A recent tweet from IntoTheBlock, a crypto analytics platform, revealed that the number of BTC holders now exceeds the entire population of Spain, reaching an astonishing 48.5 million. Despite a downward trend in Bitcoin’s value, whales continue to increase their holdings, indicating their optimism about the market.
According to IntoTheBlock, these significant investors added over $1.5 billion worth of BTC to their portfolios in the last two weeks of August alone. On September 3rd, IntoTheBlock announced on Twitter that whale activity had pushed the total number of Bitcoin holders above 48 million for the first time.
What’s even more remarkable is that this accumulation occurred while BTC prices plummeted to a two-month low below $26,000. The optimistic sentiments among investors can be attributed partly to Grayscale Investments’ recent court victory against SEC regulations.
The ruling determined that SEC lacked sufficient explanation for rejecting Grayscale’s request to convert Grayscale Bitcoin Trust (GBTC) into Bitcoin Spot ETFs. This legal triumph bolstered investor confidence and fueled positive perspectives towards cryptocurrencies.
Bitcoin Remains Dominant in Crypto World
At the current moment, BTC is priced at $25,910.67, showing a slight surge of 0.40%. Its 24-hour trading volume stands at $8,393,256,034, along with a live market cap of $505,045,017,903. This reinforces Bitcoin’s dominant position in the world of cryptocurrencies.
According to CoinMarketCap, Bitcoin’s dominance index currently rests at 42.9%, meaning it constitutes nearly half of the total value held by all cryptocurrencies combined. Over time, BTC dominance index has experienced fluctuations – reaching its highest point of 95.9% in January 2017 and its lowest point of 33.4% in January 2018.
These shifts in the BTC dominance index reflect investor preferences and sentiment, along with the emergence of new digital assets. Some analysts believe that a high index indicates risk-averse behavior, favoring established cryptocurrencies like Bitcoin. In contrast, a low index suggests a willingness to diversify and explore other opportunities in the crypto market.
However, there are opposing views on whether this dominance index serves as a reliable indicator for assessing the health or direction of the entire crypto market. Critics argue that various factors influence this metric including supply and demand dynamics, calculation methodologies for market capitalization figures, and even listings or delistings of different cryptocurrencies.
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