In a recent report, Fidelity Digital Assets revealed the significant increase in the number of Bitcoin addresses holding at least $1,000 worth of Bitcoin (BTC). According to Fidelity’s analysts, this segment reached an all-time high of 10.6 million wallets in mid-March, representing a doubling from the 5.3 million addresses recorded in 2023.
The analysts suggest that this surge in Bitcoin addresses with smaller holdings could indicate a growing distribution of the cryptocurrency and its adoption among the average person. Despite rising prices, the metric indicates that small addresses continue to accumulate and save Bitcoin, which Fidelity calls a positive growth trend.
Fidelity’s analysts provided a generally positive outlook for Bitcoin in the short term based on numerous long-term data points. Out of the 16 metrics tracked, half were considered positive, while a quarter were deemed negative or neutral.
The report also examined the amount of Bitcoin held on cryptocurrency exchanges, which continued its downward trend in the first quarter of 2024. The total amount fell by 4.2% to 2.3 million Bitcoin, approximately 30% lower than the peak of over 3 million Bitcoin held in 2020. However, Fidelity noted that this decrease in exchange-held Bitcoin does not necessarily mean an increase in self-custody. Custodians like Fidelity are actively working on solutions that allow customers to retain control of their private keys while trading through exchanges.