There are now around 100,000 Bitcoin (BTC) addresses that are holding more than $1 million worth of the cryptocurrency. The Bitcoin and crypto-mania has helped many individuals become millionaires (many almost overnight) as the digital asset continues to attract many more new investors including major institutions.
Data shared by Finbold with CI shows that there are “at least 109,952 addresses” that each have a BTC balance of around $1 million “as of February 22, 2021.” Approximately 9,200 of these crypto addresses each maintain a balance of $10 million, meanwhile, the rest of them (100,752 addresses) carry a balance “amounting to $1 million each.”
Crypto addresses with Bitcoin worth at least $100,000 “stand at 480,956, while about 2.2 million wallets hold Bitcoin with a value of $10,000.” Another 6.5 million addresses “each contain a balance worth $1,000.” The largest group of addresses currently maintain a BTC balance of $100 at 15.08 million.
As mentioned in the update, large Bitcoin holders, who are in “most cases institutional investors,” have played a “key role in the asset’s recent bull run.” The rally has seen Bitcoin reach many new all-time highs (most recently just above the $58,000 mark but then correcting to around $52,000 at the time of writing). Bitcoin market cap recently surpassed the $1 trillion mark as well.
Despite some corrections, Bitcoin has still “managed to record an impressive 85.3% year-to-date gains as of February 22, 2021.” In general, the BTC price movement could have an “impact on the value of Bitcoin held by the addresses.”
(Note: for more details on this story, you may check out the complete stats here.”)
In another update shared with Crowdfund Insider, John Hunter, Business Development Director at ZEDRA Guernsey, points out that Bitcoin was launched back in 2009 and began to gradually increase in value in 2010 when the coins surged from $0.0008 to $0.08.
But in recent months, we’ve all seen Bitcoin set all-time record highs – which have been supported by major announcements from PayPal, Mastercard, BNY Mellon’s adoption and the influx of numerous institutional investors, Hunter noted.
He also mentioned that this may have given Bitcoin “new legitimacy.”
“There’s also been interest among retail investors and last month the US Office of the Comptroller of the Currency stated that national banks can use blockchain networks and Stablecoins for payments, further legitimizing digital currencies.”
But he also noted that meteoric rises and accompanying falls in value still appear to be “the norm leading Bank of America to speculate that the current Bitcoin run is ‘the mother of all bubbles’ and the UK’s financial regulator, the FCA, issuing an unusual warning on crypto investments that noted: ‘If consumers invest in these types of product, they should be prepared to lose all of their money,” Hunter added.
He also mentioned that JPMorgan’s prediction proved to point “the right way” ahead based on recent developments. The bank had predicted that the BTC price might reach $146,000 as more large companies start adopting Bitcoin as a gold investment alternative.
It’s worth noting, however, that there are many things about Bitcoin that JPMorgan analysts feel can seriously limit its use an inflation hedge like its correlation with many traditional financial market assets and its high levels of volatility.
“Just because Bitcoin can be a risky investment, it doesn’t mean that there isn’t interest or demand. For long-term investors who went in early or when bitcoin had a low valuation, bitcoin can be a lucrative investment. Experienced investors who have significant capital available to invest and who can afford to take big risks in the hope of big rewards are all enjoying the Bitcoin ride.”
While commenting on escrow agreements and how they’re quite popular for BTC transactions, Hunter claims they offer “a win-win for all parties.”
He explained that traditional escrow agreements are prepared in a manner that aims to protect the interests of sellers and vendors and it works pretty much the same way for Bitcoin transactions.
He further noted:
“Escrow becomes especially relevant when the value of Bitcoin increases significantly and more cash needs to be deposited to purchase Bitcoin, or there is a liquidation that translates to a significant amount of fiat money. Escrow is an ideal solution, which protects both parties. Not many people know this kind of service can be provided.”
He also mentioned that an escrow agreement includes the terms of the transactions and the conditions that are to be satisfied by all concerned parties. Then, alongside various industry partners, ZEDRA serves as escrow agent by overseeing the transaction for the sale and purchase of the cryptocurrency.