Bitcoin: Wholecoiners Hold Strong Despite Retail Decline, Regulatory Battles Heat Up

Bitcoin: Wholecoiners Hold Strong Despite Retail Decline, Regulatory Battles Heat Up

Bitcoin (BTC) continues to be a magnet for long-term investors, with the number of “wholecoiners” (addresses holding 1+ BTC) remaining above 1 million for the past 13 months. This is a bullish sign, indicating strong belief in Bitcoin’s future potential. However, a recent decline in retail investor activity suggests a potential dampener on short-term price movements.

Hodling Strong: The Rise of the Wholecoiners

The number of wholecoiners has steadily climbed since Bitcoin’s inception, reaching an all-time high of 1,024,000 in January 2024. Despite the price doubling since May 2023, the number remains above 1 million, signifying a core group of investors holding onto their Bitcoin for the long term.

It’s important to note that not every wholecoin address represents a single person. Some addresses belong to institutions like exchanges or investment firms, holding large amounts of Bitcoin. Additionally, a significant portion of Bitcoin (around 17%) is estimated to be lost forever.

Retail Retreat? On-Chain Data Hints at Waning Interest

While the number of wholecoiners is impressive, on-chain data suggests a decline in retail investor activity. The transfer volume of transactions between $1,000 and $10,000 has dropped significantly, indicating that smaller investors might be losing interest in Bitcoin. This trend mirrors past bear markets, where retail participation dwindled during price downturns.

Regulatory Battles: Denmark vs. Self-Custody Wallets

The global regulatory landscape for cryptocurrencies remains in flux. Denmark’s recent proposal to regulate DeFi interfaces, including Bitcoin wallets, has sparked controversy. Critics argue this overreach could stifle innovation and hinder access to self-custody services. This situation contrasts with the US and EU, which are taking a more cautious approach, emphasizing education and evaluation before implementing strict regulations.

Bolivia Lifts Ban on Cryptocurrencies

In a positive development, Bolivia has lifted its ban on cryptocurrencies, allowing banks to facilitate transactions. This aligns with recommendations from GAFILAT, a financial watchdog organization. However, cryptocurrencies are not considered legal tender in Bolivia, and the Central Bank plans to educate the public on the associated risks.


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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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