New data points to a strengthening trend of long-term investment in the cryptocurrency market. According to data shared by the on-chain analytics company Santiment, the number of Bitcoin wallets has reached an all-time high. The total number of Bitcoin wallets has risen to a record 58.45 million.
According to analysts, this increase indicates that adoption in the cryptocurrency ecosystem is expanding, with both individual and long-term investors becoming more involved in the market. In particular, Bitcoin’s perception as a “store of value” in recent years reinforces investors’ tendency to hold onto their assets for longer periods.
Santiment data also points to another important trend. The amount of Bitcoin held in wallets on major cryptocurrency exchanges has fallen to its lowest level since December 2017. This indicates that investors are preferring to move their assets to personal wallets and, in particular, cold storage solutions, rather than keeping them on exchanges.
According to experts, the decrease in the supply of Bitcoin on exchanges is considered a development that could potentially lead to a supply squeeze in the market. This is because when investors withdraw their assets from exchanges and transfer them to personal wallets for long-term storage, the amount of Bitcoin actively traded can decrease.
Santiment analysts note that this trend indicates the “buy and hold” strategy is becoming increasingly common. Increased adoption and a long-term investment approach are cited as factors strengthening Bitcoin’s fundamental position in the cryptocurrency market. According to experts, the decrease in supply on exchanges and the increase in the number of wallets could also provide important signals regarding the market’s future price dynamics.
*This is not investment advice.
