The Bitcoin ($BTC) network has officially surpassed a massive milestone, with users on it having created over 1 billion address since its launch over a dcade ago. The milestone comes amid an ongoing bear market that has seen BTC drop below the $20,000 after hitting a new all-time high above $69,000 late last year.
According to blockchain analytics firm Glassnode, the total number of addresses created on the Bitcoin network has kept on growing even with the cryptocurrency’s price plunging to surpass the new milestone, which was shared on social media.
It’s worth noting that one address does not necessarily equal one user on the network. Every Bitcoin network participant can create as many addresses as they please, and some experts advise users to do so to boost their privacy on the network.
On the other hand, some addresses hold funds for potentially thousands of users as they belong to cryptocurrency service providers. Crypto exchanges, for example, often hold users’ funds in addresses with large amounts of funds so they can be securely stored offline.
In its weekly report, Glassnode has detailed that cryptocurrency holders with “diamond hands” are facing pressure to hold onto their funds and avoid capitulation amid the ongoing bear market, with data suggesting BTC hasn’t seen its bottom yet.
The report details that the proportion of Bitcoin held by long-term holders compared to short-term holders hasn’t reached the depths of the previous bear market, in which long-term holders saw their supply surpass34% of all circulating BTC, while short-term holders controlled between 3% and 4%.
Currently, short-term holders control 16% of the cryptocurrency’s supply at a loss, which suggests that coins still need to be redistributed to long-term holders over time. Per the firm, while numerous bottom formation signals are in place, the market may still need more time and pain to “establish a resilient bottom.”
The firm also pointed to BTC holders potentially having to sell their funds in the next few months to stay afloat. It wrote that the “duration of miner capitulation in the 2018-2019 bear market was around 4-months, with the current cycle only having started in 1-month ago.” Glassnode added:
Miners currently hold approximately 66.9k BTC in aggregate in their treasuries, and thus the next quarter is likely to remain at risk of further distribution unless coin prices recover meaningfully.
As reported, a popular cryptocurrency trader has predicted that the flagship cryptocurrency Bitcoin will hit a new all-time high next year after an unexpected rally helps it surpass the six-figure mark, before the bear market returns in 2024 and 2025.
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