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⚡81,000 Wallets Hold $1M+ in Bitcoin🎁

Croxroad

13 Nov 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

✅ The Bitcoin Rich List Grows

The number of Digital Currency wallet addresses holding over $1 million worth of Bitcoin has skyrocketed this year, more than tripling in quantity. At the start of the year, there were around 23,795 such wallets, but now that number has surged to 81,925, marking an astonishing 237% increase over the past 11 months. It's essential to note that these millionaire wallets don't directly equate to individual users, as many of these addresses belong to crypto exchanges and financial institutions. Interestingly, data comparison with Glassnode shows that the peak for addresses holding over $1 million in Bitcoin was during the height of the previous bull market in November 2021, with a record 112,573 addresses recorded on November 9, 2021, just before Bitcoin hit its all-time high of $69,000 on November 10, 2021.

Over the year, the number of "wholecoiners," referring to wallets holding at least 1 BTC, has seen a modest uptick, rising by 4% from the start of the year to a current count of 1,018,015 addresses. This increase follows a notable surge between April and December of the previous year, indicating a strong trend of accumulation despite turbulent periods in the crypto market. Presently, Bitcoin is valued at nearly $37,100, marking a 38% increase in the last month, largely fueled by anticipation surrounding upcoming spot exchange-traded fund (ETF) products. While Bloomberg ETF analysts predict a 90% chance of a spot Bitcoin ETF approval by January 10, which many believe could prompt a significant price surge, not all analysts share this sentiment. Tina Teng, an analyst at CMC Markets, suggests that while an approval would benefit the crypto industry, both Bitcoin and the broader economic landscape might lack the necessary fundamentals for a complete trend reversal and sustained bullish momentum.

💂 Bitcoin's Edge Over CBDCs

In November 2022, a crash at FTX triggered a massive exit from the platform, leading to a significant drop in Bitcoin's value by 22% in just one day. Amid the aftermath, the European Central Bank (ECB) made a bold and rather ominous statement, referring to Bitcoin's price stabilisation as its "last gasp" before an inevitable descent into irrelevance within the world of crypto-assets. What's intriguing is that this public comment from the ECB seemed to stem from a competitive angle. Ulrich Bindseil, one of the authors behind "Bitcoin's Last Stand," had previously penned a paper on "Central Bank Digital Currency" back in 2019, outlining the potential future trajectory of the monetary system, hinting at where the winds might be blowing in the world of finance.

That's quite a comprehensive exploration of Bitcoin's role amid the evolving financial landscape. Essentially, it discusses the clash between Bitcoin and Central Bank Digital Currencies (CBDCs) - a collision of surveillance token versus sovereign money. The debate primarily centres around the inherent anonymity in cash and the perceived risks associated with such privacy, especially concerning illicit activities. The programmable nature of CBDCs raises concerns that they could facilitate widespread control akin to a social credit system, echoing the situation observed in China.

Bitcoin, on the other hand, operates on a decentralised and open framework, using an immense amount of energy to secure its blockchain. This very energy-intensive nature has become a point of contention, though it also serves as a pillar of its security. This security and the predictability of its monetary policy have led to Bitcoin becoming synonymous with digital money, gaining significant value and demand, especially in contrast to centralised monetary systems that face challenges in maintaining stability and protecting privacy.

The piece delves into the implications of monetary policy, citing Bitcoin's emergence in response to the traditional fractional-reserve banking system's flaws. It highlights the relentless devaluation of currency and the need for a hedge against it, a role Bitcoin has played given its capped supply and decentralised nature. The piece ends by touching on the potential consequences of escalating debt, inflation, and the inherent difficulties in finding a path away from these issues within the current system, suggesting that while CBDCs might exacerbate existing problems, Bitcoin, with its publicly verifiable wealth accounting, presents a distinct alternative in monetary history.

🥑 Moving Average Convergence Divergence (MACD)

The Moving Average Convergence Divergence (MACD) is a popular technical analysis tool used in trading markets, including Bitcoin. It's based on moving averages and is designed to reveal changes in the strength, direction, momentum, and duration of a trend in an asset's price.

The MACD is derived by subtracting a longer-term Exponential Moving Average (EMA) from a shorter-term EMA. This calculation results in a new line, the MACD line. Additionally, a signal line, often a nine-day EMA of the MACD line, is plotted on top of the MACD line.

When the MACD line crosses above the signal line, it's considered a bullish signal, indicating a potential upward movement in the price. Conversely, when the MACD line crosses below the signal line, it's considered bearish, signaling a potential downward price movement.

The MACD histogram, which shows the difference between the MACD line and the signal line, provides a visual representation of the distance between these lines. It grows larger as the two lines move further apart and shrinks as they converge.

Traders use the MACD to identify potential buy or sell opportunities, as well as to confirm the strength of a trend and possible trend reversals in the price of Bitcoin or any other asset.