Recent events in the world of cryptocurrency have many believing that a similar rise to fame is due, 2017 style. Three years ago, the world was captivated by a new class of assets. Today, many cryptos are once again on the march towards higher prices and gaining the attention of those around the world. Only this time, data suggests that Bitcoin ownership is expanding at an unprecedented level. Not only are more people purchasing Bitcoin, but people are purchasing and holding more Bitcoin than ever.
A recent study conducted by Chainalysis indicates that more wallets than ever have 1,000 BTC in them. This means that not only are more people starting to acquire Bitcoin, but those that are buying Bitcoin are committed to the asset as an investment. The large number of wallets that hold huge amounts of Bitcoin support that. Another possibility, the study says, is that owners of several thousand BTC are diversifying them across many wallets. This could mean that these are commercial investors that are taking a large interest in the asset and the industry as a whole.
This does seem to align with several news stories and announcements made this month that institutional investors are making larger and larger forays into Bitcoin and accumulating it at a large scale to allow them to offer investment products to customers or streamline their own payments using cryptocurrencies. One thing is for sure–this rally for Bitcoin will be different and more sustainable than the last one due to the large sums of capital that are being committed to the asset this time around.
