Bitcoin Approaches Major Milestone with Rising 100 BTC Wallets

By: Eva Baxter

As Bitcoin continues to draw attention with its fluctuating market dynamics, it is now on the brink of a significant milestone: reaching 20,000 wallets that hold at least 100 BTC. This development is seen by experts, such as the analytics firm Santiment, as a bellwether for the cryptocurrency's future market health. This potential milestone is significant as it suggests improved distribution and reduced market manipulation by a small group of whales, addressing a long-standing concern for many in the Bitcoin community.

Currently, there are 19,993 wallets holding 100 BTC or more, each worth an estimated $6.71 million. Regarding these high-value wallets, they are predominantly held by high-net-worth individuals, institutional participants, and long-term investors. The rising number of such wallets indicates these entities are accumulation-focused, particularly following market dips, which is often interpreted as a bullish sign for future market trends.

However, while the number of wallets with significant BTC holdings grows, the overall percentage of Bitcoin supply held by such key stakeholders remains fairly stable, which might explain the suppressed price levels. This apparent shift in holdings from smaller retail wallets to larger entities suggests a trend towards more significant consolidation without extreme centralization. The steady increase in whale wallets often aligns with accumulation phases that have supported historical price recoveries. For a more robust market shift, an increase in both the number of wallets and the share of supply they control would be pivotal, as this would mark a deeper structural change.

Furthermore, the recent emphasis on Bitcoin Spot Exchange-Traded Funds (ETFs) receiving substantial inflows further underscores the growing institutional interest in Bitcoin. With nearly $750 million flowing into Bitcoin ETFs over just two days, according to ETF analyst Eric Balchunas, market dynamics could be shifting. These inflows might signal renewed investor confidence or possibly just a temporary rebound. The coming weeks will be critical in determining whether these movements are the start of a sustained recovery or merely a momentary uptick in an otherwise volatile market.