New data regarding the composition of Bitcoin holders shows that wealthy investors are pouring money into the digital asset at a rapid pace.
This is revealed by the number of wallets holding over 1,000 BTC – which have been rocketing higher over the past several days, weeks, and months.
The rapid growth that this metric has shown is emblematic of the growing demand for “hard assets” during a time of unprecedented money printing.
There’s a strong likelihood that this trend will only continue picking up steam as scarcity becomes increasingly desirable.
Wealthy Investors Turn to Bitcoin as Number of Wallets with Over 1,000 BTC Grows
Bitcoin’s price action over the past few weeks and months has been both strong and stable, with the cryptocurrency seeing multiple prolonged consolidation periods that have been followed by upside movements.
This price action has been strikingly similar to that seen by gold, as investors have been treating BTC as a safe-haven investment.
It now appears that wealthy investors are increasingly recognizing that Bitcoin’s absolute scarcity makes it the perfect asset to hold during times of widespread money printing and inflation.
Its correlation to gold has also made it an attractive asset due to it being a hedge against economic uncertainty.
According to recent data from the analytics platform Glassnode, the number of Bitcoin wallets holding over 1,000 BTC has been a sharp rise in recent times, with this data likely being emblematic of wealthy investors’ looking to gain exposure to save-haven assets.
Data aggregator Unfolded spoke about this data in a recent tweet, saying:
“Bitcoin addresses with balances over 1,000 BTC (~$11m) hits a new record high, a trend that signifies accumulation.”
Image Courtesy of Glassnode.
Institutions Still Remain Widely Short on BTC
Despite large investors pouring money into Bitcoin at a rapid pace, institutional investors on the CME have more short exposure to Bitcoin than they have ever had before.
Unfolded also spoke about this in a recent post while referencing the latest Commitment of Traders Report, noting:
“August CME BTC Commitments of Traders Report (COT) Open Interest: 14,454 (up 10.4%). Smart money net short new all-time-high. Retail net long new all-time-high.”
Image Courtesy of Unfolded. Chart via TradingView.
This accumulation trend seems to confirm that Bitcoin is being adopted as a safe haven asset, which boosts its mid-term outlook, given the global economic situation.
Featured image from Unsplash. Charts and pricing data via TradingView.