- Purchasing a Bitcoin would become more difficult in the future due to halvings and spot ETFs.
- At the time of this writing, one BTC was trading at $37,447.
Own a Bitcoin [BTC] has become a prestige topic for crypto market participants. Given the rate at which the King’s Coin has risen in value over the past decade, owning at least one unit of the valuable asset means honor.
Cheers to Wholecoiner
This user cohort, popularly called Wholecoiners, has seen steady expansion over the years. According to a recent X post by on-chain analytics firm IntoTheBlock, there were more than 1 million Wholecoiners in the market.
Source: IntoTheBlock
According to CoinMarketCap, at the time of this writing, one BTC was trading at $37,447. The high price presents significant barriers to entry for many players, who then compete by purchasing small units of the digital asset.
Additionally, the supply cap of 21 million imposes further restrictions on owning an entire Bitcoin. Note that more than 1 million coins are believed to be held by creator Satoshi Nakamoto.
Against this backdrop, the growing number of Wholecoiners reflected confidence in Bitcoin’s long-term prospects.
From the chart above, it can be seen that the number fell during the 2021 bull market as investors sold and booked profits. However, when the market entered a bearish phase, accumulation and HODLing became popular.
In the future, acquiring a Bitcoin would become more difficult due to the halving and coins held in spot exchange traded funds (ETF). The shortage could spur demand and, as a result, sharp price increases.
Whales also increase their appetite
Meanwhile, whale investors, detached from the Wholecoiner discussion, continued to accumulate more Bitcoins.
According to AMBCrypto’s examination of Glassnode data, addresses with at least 1,000 coins reached levels last seen in May 2022. Aside from brief profit-taking, the number of Bitcoin whales has steadily increased in 2023.
Source: Glassnode
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Hard to let go
As mentioned earlier, Bitcoin’s scarcity led users to HODL coins instead of trading them on the market. The supply of long-term holders (LTH), an indication of BTC’s illiquidity, rose steadily in 2023.
In contrast, the supply of short-term holders (STH) or the supply of tradable securities decreased.
Source: Glassnode
There is a higher chance that the number of Wholecoiners will continue to increase in the run-up to the halving. With expectations of a bull market running high, many investors may want to acquire the world’s largest digital asset before it gets out of hand.
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