Bitcoin (BTC) has moved to $21,000 and the digital currency remains very close to this value according to CoinGecko. This strong bullish moment comes at a time in which we are approaching 1M unique Bitcoin addresses that hold at least 1 BTC. But what could happen in the coming months for Bitcoin?
Bitcoin Stays Close to $21K
After multiple months with Bitcoin price being traded close to $16,800, the market has pushed Bitcoin to $21,000. In that way, Bitcoin erased the losses created by the recent FTX collapse in November 2021.
In recent days, Bitcoin was able to move higher and surpass $21,000 for a brief period of time. This is something that analyst consider bullish as inflation rates in the United States have reached the lowest point in over a year.
According to data shared by CoinGecko, Bitcoin is currently being traded at around $21,050 and it has a market valuation of $400 billion. In the last 7 days alone, Bitcoin surged by 22.8%, the largest increase among the top 10 and the third largest among the top 30 digital currencies in the market.
Many other cryptocurrencies have also moved higher, including Ethereum (ETH), growing 20.6% in the last 7 days, and Litecoin, expanding by 11.2% during the same period of time.
But will Bitcoin start a new bull run from the current prices? This is the question that analysts have to currently answer. One of the things that analysts noticed in recent months is related to the fact that Bitcoin and digital currencies moved according to financial markets.
When financial markets moved higher, then Bitcoin and other digital currencies followed. But why did markets move lower or higher? Mostly due to interest rates and signals from the United States Federal Reserve. With interest moving lower, markets and cryptocurrencies moved higher, but with interest rates moving higher, the market moved lower.
It is not only important to know how interest rates move but also what the FED thinks about the monetary policy and its impact on the market.
1M Addresses Could Hold 1 BTC
It is worth pointing out that this increase in Bitcoin’s price comes at a moment in which Bitcoin addresses with more than 1 BTC are very close to 1 million. According to data shared with Cryptoslate, there are 971k unique wallets holding one Bitcoin or more.
There were only two years since Bitcoin was created in which the number of addresses holding more than one Bitcoin fell. These years included 2018 (702K wallets holding at least 1 BTC), and 2021 (814k wallets holding at least 1 BTC).
This does not mean that there are 971k individuals holding Bitcoin, instead, there are multiple entities and users that might have more than 1 BTC held in multiple wallets. The question is to understand how far this can go and whether this could continue growing in the future.
