Bitcoin Holders Hit New Highs as Fed Tightening Eases

The number of individuals holding more than one bitcoin rose to new heights on Sunday as investors remain skittish on bank sector stability

article-image

Source: Shutterstock / PixieMe, modified by Blockworks

share

The number of individuals holding select amounts of bitcoin rose to new heights on Sunday as the broader traditional market continues to digest an easing of US Federal Reserve fund rates.

Data from provider Glassnode shows the number of addresses holding more than one bitcoin (BTC) rose to an all-time high of 989,875, as the asset’s price hovers near $28,000.

Buying pressure remains resilient despite fluctuations and recent market volatility. Of the total addresses currently holding bitcoin, 70% or roughly 31.96 million addresses are now in profit, IntoTheBlock data shows.

US equities finished positive on Friday following a volatile week of trading which saw the Fed raise rates by a further 25 basis points, putting to rest investor fears of steeper rate hikes.

Inflation remains a primary concern for the central bank, despite recent bank failures, including the collapse of Silicon Valley Bank earlier this month. The Fed is now attempting to walk a tightrope between persistent inflation and triggering a nationwide recession.

On Thursday, Treasury Secretary Janet Yellen said the US government is prepared to take further action to shore up the banking sector, providing a temporary reprieve to heightened uncertainty.

That has so far had little impact on investor sentiment, as money market funds offered by the likes of Goldman Sachs, JPMorgan Chase & Co. and Fidelity have surged by more than $286 billion over the past two weeks.

Investors are likely to remain skittish regarding the safety of bank deposits as they seek out alternatives, Singapore-based crypto financial services firm Matrixport said in its latest report.

“This flight to quality…will likely continue, so we have to be careful that the US bank run might not have run its course,” it said.

The US regional bank index will likely serve as an indicator of the severity of the stress in the system, which could see further allocation to digital assets as a risk hedge, Matrixport said. 

Major stock market indexes clocked a winning week, with the Dow Jones average rising 1.2%, the S&P 500 gaining 1.4% and the Nasdaq Composite finishing up 1.7% higher.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Fifteen million daily failed transactions disappeared from Solana

article-image

FTX debtors will pay the IRS $200M, with an outstanding lower priority claim of $685M

article-image

I’ve come to the realization that more attention is needed to create and sculpt the digital spaces where we live

article-image

The NYSE went down yesterday after a glitch caused a string of erroneous trades. Does DeFi fix this?

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM