Bitcoin address surge: Behind the weakening influence of miners

In the world of digital currency, Bitcoin is undoubtedly the most dazzling star. Recently, the number of addresses with one Bitcoin has hit new highs, which has attracted attention and discussion from all parties. At the same time, the influence of miners on Bitcoin prices seems to be weakening. What exactly causes this change? This article will deeply analyze this trend and the logic behind it.

The surge in the number of Bitcoin addresses means that more and more people are beginning to embrace this emerging currency. According to the latest data, the number of addresses with at least one Bitcoin has exceeded one million, setting a record high. This phenomenon not only reflects the popularity of Bitcoin, but also illustrates the public's recognition and demand for digital assets. In the past few years, with the continuous development of blockchain technology and the diversification of application scenarios, more and more people have begun to pay attention to and invest in Bitcoin.

Against this background, the role of miners is also quietly changing. As an important participant in the Bitcoin network, miners once played a pivotal role in price fluctuations. However, as the market matures, the influence of miners on Bitcoin prices is gradually weakening. Behind this change, it reflects the profound changes in the supply and demand relationship in the market.

First, the diversification of market participants makes the price of Bitcoin affected by a wider range of factors. In the past, miners would affect the supply of Bitcoin due to changes in mining costs, leading to price fluctuations. However, today's market has attracted a large number of investors and traders, and the liquidity of the market has been greatly enhanced. For example, the entry of institutional investors and the increasing investment in Bitcoin by digital asset management companies such as Grayscale have further promoted the maturity of the market. This makes the price of Bitcoin no longer solely dependent on the behavior of miners, but is affected by more complex market forces.

Secondly, the development of technology is also changing the role of miners. With the advancement of mining technology, the threshold for mining has gradually decreased, and more and more small miners and ordinary investors can participate in it. This decentralized trend has enhanced the security and stability of the Bitcoin network, but it has also led to the decentralization of the miner group, and the influence of a single miner on the overall market has weakened.

In addition, the price fluctuations of Bitcoin are also affected by the economic environment. In the context of uncertainty in the global economy, many investors regard Bitcoin as a safe-haven asset. This shift makes the price of Bitcoin more affected by macroeconomic factors rather than just the mining behavior of miners. For example, in the case of increasing inflation, investors will tend to buy Bitcoin to fight against currency depreciation, thereby driving its price up.

In the process, social media and the speed of information dissemination are also changing the face of the market. Today, investors can quickly obtain market information through platforms such as Twitter and Reddit and make corresponding investment decisions. The rapid spread of this information makes the market more responsive, and the direct impact of miners' mining behavior on prices is weakened.

It is worth noting that although the influence of miners is weakening, their importance in the Bitcoin network cannot be ignored. Miners are not only responsible for maintaining the security of the network, but also incentivize the generation of new Bitcoins through mining rewards. Therefore, the existence of miners is crucial to the Bitcoin ecosystem.

However, the challenges faced by miners are also intensifying. As the difficulty of Bitcoin mining continues to increase, many small miners find it difficult to maintain profitability and are gradually eliminated by the market. At the same time, global concerns about energy consumption have also led to scrutiny of the environmental impact of miners, and some regions have even restricted miners' activities. These factors are redefining the role of miners in the Bitcoin ecosystem.

In the future, the Bitcoin market will continue to evolve. With the advancement of technology and the increasing number of market participants, the influence of miners may be further weakened, and the supply and demand relationship in the market will become the main factor determining the price of Bitcoin. What investors need to pay attention to is no longer the behavior of miners, but the dynamic changes of the market as a whole.

For ordinary investors, it is crucial to understand this change. When choosing an investment strategy, in addition to paying attention to the dynamics of miners, we should pay more attention to the overall trend of the market, the macroeconomic environment and the speed of information dissemination. This will help investors make more informed decisions to cope with possible price fluctuations in the future.

The future of Bitcoin is full of uncertainty, but its potential as an emerging asset cannot be ignored. As more and more people participate in this market, the form and function of digital currency will continue to evolve. In the future, there may be more innovative financial products and services combined with Bitcoin to provide investors with more choices.

In general, the number of addresses with one Bitcoin has reached a new high, and the influence of miners on currency prices has weakened. This phenomenon is a manifestation of the maturity of the digital currency market. As the market continues to develop, investors need to maintain keen insight, adapt to changes, and seize opportunities. In this ever-changing market, only by continuous learning and adaptation can we remain invincible in the wave of digital currency.

The future Bitcoin market will not only be a game between miners and investors, but an ecosystem jointly built by diversified participants. In such an environment, whoever can grasp the trend will succeed in this digital currency revolution. Whether as an investor or as a market participant, understanding this change will be the key to success.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to data from the metrics and analysis website Glassnode, the number of addresses holding at least one Bitcoin has reached an all-time high. And today the price of Bitcoin has also hit a new high since January 2018, reaching $15,700 or about RMB 102,800.

As of today, there are 824,193 Bitcoin addresses holding at least one Bitcoin. This exceeds the all-time high of 824,160 addresses observed on September 17, 2020.

The number of addresses holding at least one Bitcoin has been steadily climbing since Bitcoin came into being in 2008 - although the price of Bitcoin has risen significantly since then.

The Bitcoin Price Logarithmic Rainbow Expected to Rise After Halving May Have Just Begun

But the new record may be related to the price of Bitcoin, which has risen by about $4,000 in the past month alone, and by about $11,000 since the coronavirus-induced market crash in mid-March. Similarly, the high price of Bitcoin may make the current price foundation more solid and gain greater room for profit in the future. It is relatively expensive to own a Bitcoin at present.

Why is the price of Bitcoin rising?

The coronavirus pandemic, the US election, fiscal easing, whichever factor is right - 2020 is the year of the black swan, and the price of Bitcoin has also stood out from many assets.

According to Glassnode, Bitcoin mining difficulty has dropped by 16%, the second largest adjustment ever -
The previous record was set in October 2011, when it dropped by 18%. This was caused by the seasonal relocation of Chinese miners, and the boom-bust conversion mainly occurred in China.

It's not just Bitcoin. Glassnode also recently reported that the number of Ethereum addresses holding more than 100 ETH (about $4,000) reached an all-time high of 53,019. This broke the record of 52,943 set on July 13 this year.

On-chain indicators show that the influence of Bitcoin miners on prices is weakening

A new report from on-chain analysis provider CoinMetrics suggests that miners' considerable influence on the Bitcoin network is gradually disappearing. Bitcoin miners are holding less assets, and with the recent market being very healthy, miners may be starting to switch from a bear market hoarding strategy to selling Bitcoin for a healthy profit.

The study analyzed miners and their addresses and spending to determine if their impact on the network as a whole has changed over time. Since miners receive newly issued Bitcoins instead of buying Bitcoins on the secondary market, they are naturally net sellers of assets. The recent difficulty adjustment and hash rate (total network computing power) decline are also considered the largest downward difficulty adjustment in the ASIC mining era.

After measuring the net flow from two types of addresses related to block rewards, it was found that miners' impact on liquidity has gradually decreased:

"On-chain indicators such as miner holdings and net transfers show that miners' influence on the network is gradually weakening."

Operational costs such as electricity and rent are denominated in fiat currency, which increases the pressure to sell BTC for fiat currency. The study found that miners generally hold less Bitcoin over time.

Addresses that receive block rewards, as well as addresses from which instant transactions are received, are holding a decreasing number of tokens.

From the perspective of total supply, the gradual reduction in the supply held by miners and mining pools is more obvious. That said, the report confirms that miners and mining pools still control a "significant portion" of the total supply. In particular, large miners active in the early days of the network control a large amount of BTC.

However, the amount of Bitcoin held by miners has generally declined throughout the history of the network.

The data shows that the percentage of total supply held by mining pool addresses and miner addresses has dropped from about 25% in 2015 to about 18% today. The reduction in holdings means that miners can dump less BTC into the market, reducing their impact on prices.

In the early days of the network, net flows were volatile as both the number of BTC sales and prices changed dramatically. However, volatility has gradually decreased over time, likely due to the halving event and the reduction in block rewards. These flows have also experienced a gradual decrease in volatility, indicating that miners have a gradually decreasing impact on liquidity.