Bitcoin Wallets Surge: Investors Drive Up BTC’s Price

Wallets holding less than 1 BTC are on the rise, and big wallets are also witnessing a new peak, which could further boost confidence in the cryptocurrency.

Growing interest from small-scale investors and large institutions supports the continued rise in Bitcoin price. This BTC price rally hints at greater market confidence.

Number of Retail BTC Wallets Soar

One of the most striking trends in the Bitcoin market is the rising number of wallets holding less than 1 BTC. A recent post by Axel Adler Jr, a verified author at CryptoQuant, highlighted this trend.

Adler noted that the number of Bitcoin wallets holding less than 1 BTC increased by over 21% to 323,000 addresses. This sharp rise from the 265,000 addresses when BTC hovered around $61,000.

Retail investors are accumulating more BTC, no matter how the market moves. The recent uptrend in the price of Bitcoin has further brought optimism, where Bitcoiners are not selling their holdings.

Adler added that this trend will likely continue, projecting that the number of wallets holding less than 1 BTC will grow to 351,000 in the short term. Retail investors’ continued accumulation of BTC suggests a rise in their confidence about the long-term prospects for the flagship cryptocurrency.

Large BTC Wallets Also Show Increased Confidence

Larger institutional investors, or Bitcoin “wh”les,” a”e also showing bullish signs. Adler further noted that these whales now hold more than 3.87 million BTC, which will continue to rise.

This rise in whale activity helped shore up BitBitcoin’sice. At the time of writing, Bitcoin is trading for $106,565, up 3.6% in the last 24 hours.

Institutional confidence in Bitcoin is further reaffirmed following the recent dollar weakening. The current market conditions guarantee long-term price growth for BTC and the broader cryptocurrency market.

The Growth of Bitcoin Price Continues

In the past month, Bitcoin has recorded nearly 20% gains in its price, and the current market conditions fuel further price growth. Notably, the leading cryptocurrency’s price appreciated by 37.32% in November, while it increased by 10.95% in October.

Moreover, other factors could be responsible for additional BTC price surges. For instance, analysts have predicted that the Federal Reserve will likely reduce its interest rates by 25 basis points with a 96 percent probability during its next meeting.

Lower interest rates generally favor Bitcoin since they cause an increase in demand for it and other risk assets. Furthermore, increased institutional adoption is one of the reasons for the rising price of Bitcoin.

For example, US spot BTC ETFs recorded nearly $429 million in cumulative inflows on December 13 alone. For the week ending that day, the total inflows into these BTC products were $2.17 billion. These developments prove BTC to be a haven investment for many.

The Impact of US Bitcoin Reserve Speculation

Meanwhile, incoming US president Donald Trump has hinted at the possibility of the United States having a strategic reserve for BTC, akin to its oil reserve. Trump has been floating various concepts to enable the US to leverage the global significance of Bitcoin and other cryptocurrencies.

Presently, there are close to 200,000 BTC in the possession of the US, equivalent to more than $20 billion at today’s price, while China, El Salvador, and other countries are building their BTC reserves as well.

Earlier today, Nayib Bukele, El Salvador’s president, noted via X that the nation’s BTC investment had yielded an unrealized profit of $362 million, having invested $270 million to purchase 6,188 BTC over the past three years.

While some analysts have been enthused by the prospect of a national Bitcoin reserve, others have warned that this step may bring about market instability. They argued that creating such a reserve is complex and could expose the cryptocurrency market to new risks.

However, the rising stature of Bitcoin as a haven asset class continues to be an attraction many investors and countries can no longer ignore.

Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at [email protected] if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. CreditInsightHubs is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.