GM friends.
It’s a pleb financial revolution, and we’re taking all the corn (says the data).
Pour that fresh cup, because this is your mid-week crypto update. ☕️📰
Here’s what’s in today’s issue:
- David shares his thoughts on Bitcoin addresses over $1K hitting all time high, Kraken building an L2, Hong Kong opening spot crypto ETFs to retail investors & Marathon Digital expanding into Paraguay.
- Rekt Capital has the latest technical analysis for you on the market.
- Erik has an article on some of Lightning Network’s vulnerabilities.
- In case you missed it by Rebecca.
Thanks to Phemex for sponsoring today’s newsletter.
Last chances to join PT Airdrop Tsunami and claim your piece of the 1,000,000 PT airdrop pool. To claim your share, become a PSP holder and accumulate points through easy and fun activities.
So, fasten your seatbelts, as Phemex promises to lead its community to the moon! Join before November 19th!
Bitcoin Addresses Over $1K Hit All Time High
As of Monday, the number of addresses holding at least $1K USD worth of bitcoin (0.028 BTC) hit an all time high (ATH) of 8 million, according to data from Glassnode.
That’s great stuff. And congratulations to everyone now holding personal record amounts of bitcoin.
And since we’re on the subject, let’s review all the current data across small, medium, and large bitcoin addresses, and see what conclusions we can make (and FYI, all the data I reference below can be found at lookintobitcoin.com).
Interestingly, the number of addresses holding at least 0.01 BTC, 0.1 BTC, 1 BTC, and even 10 BTC, all hit new ATHs this year!
All these addresses peaked in early October, just before bitcoin blew up from the mid-$20Ks to the mid-$30Ks. Since then, they’ve either slightly declined (between 0.4% to 1% depending on address size) or flattened out. This shows that hardly any small or medium holders took chips off the table after this latest price pump.
With regards to the big boys, addresses with at least 100 bitcoin or more peaked back in early 2017 and have been ranging sideways since early 2022. Addresses with 1,000 bitcoin or more peaked in early 2021 and have been declining since.
When synthesizing this data, the main conclusion is that the number of bitcoin holders is growing. Addresses with at least 0.01, 0.1, and 1 bitcoin are together growing by 1 to 2 million per year, while addresses with 100 or 1000 bitcoin are shrinking at most by a few hundred per year.
This is all logical and good to see. It’s logical because as bitcoin’s price increases over time, the number of large holders will decrease (i.e. buying 100 bitcoin in 2016 ain’t the same as buying 100 today). And it’s good to see because more addresses with smaller amounts of bitcoin equals more decentralization, more democratization, and less volatility risk.
And what are your thoughts on this bitcoin address data? Do you agree, disagree, or see something else playing out? Reply to this email and let me know. I’d love to hear what you think.
Kraken to Build a Layer-Two?
Evidence is increasingly pointing to the idea that Kraken, the U.S.-based crypto exchange powerhouse, is in the process of building its own layer-two (L2) blockchain.
Here’s what we know so…
