A recent report from Fidelity Digital Assets highlights a significant increase in the number of Bitcoin addresses holding at least $1,000 worth of Bitcoin (BTC). Analysts at Fidelity said the sector surged to an unprecedented 10.6 million wallets in mid-March, doubling the 5.3 million addresses recorded in 2023.
According to analysts at Fidelity, the surge in Bitcoin addresses with low holdings suggests the cryptocurrency’s distribution is expanding and adoption is growing among the general public. Despite the price rise, data indicates that smaller addresses continue to accumulate and store Bitcoin. This is a trend that Fidelity describes as positive growth.
Fidelity analysts offer a bullish outlook for Bitcoin in the near term based on a variety of long-term data points. Of the 16 indicators tracked, half were considered positive and a quarter were classified as negative or neutral.
The report also looked at the amount of Bitcoin held on cryptocurrency exchanges, which continued to decline in the first quarter of 2024. The total amount plummeted 4.2% to 2.3 million bitcoins, which is about 30% lower than the peak of 3 million bitcoins. However, Fidelity emphasizes that this decline in exchange-held Bitcoin does not necessarily mean an increase in self-storage. Custodians such as Fidelity are actively developing solutions to help customers maintain control of their private keys while engaging in trading activity through the exchange.
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