While there is a measured recovery of the cryptocurrency market, and the king of cryptocurrencies, according to Coinmarketrate.com, is in the price range of $35 – 40K, new records and events are taking place in the Bitcoin world, which indicate that no fall can shake the faith of crypto-enthusiasts and the hopes of institutionals. Let’s see this firsthand.
Owners of less than 1 BTC activate their purchases
After the historical maximum of the Bitcoin price, there was a sharp reduction in active addresses with a non-zero balance, as, for example, after the limit in December 2017 and, on a smaller scale, in May 2021. Since the May lows of 37.58 million active addresses, the growth of number of active addresses has been steady, and now amounts to 40.16 million addresses, according to the latest report of the analytical company Glassnode.
Against the background of an increase in the number of active addresses with a non-zero balance, the number of bitcoin addresses belonging to retail investors, i.e. those with less than 1 BTC, does not seem to have suffered from the correction and continues to grow steadily, the report says.
There is some similarity with the bearish period of 2019, and a new historical maximum of 40.16 million addresses with a non-zero BTC balance is noted.
The boom in retail investors’ portfolios continues
Portfolios owned by so-called “small investors” (those who control less than 1 BTC) are another parameter that was not affected by the correction, according to the report. “The supply growth rates for this cohort showed two macro-increases, the first after March 2020, and the second in May 2021”, the study emphasizes.
As you can see on the graph, there are two tilts in the evolution of wallets with less than 1 BTC: in March 2020, after the announcement of the Covid 19 pandemic, and in May 2021, when the biggest correction in the price of Bitcoin occurred that year.
In January 2018, the share of the offer in wallets with less than 1 BTC was less than 3%. Four years later, according to the schedule, wallets with less than 1 BTC exceed 5% of the offer.
In November 2021, there was a temporary pullback of the Bitcoin price, shortly before the start of a major “bullish” growth, as a result of which the BTC price exceeded the historical maximum of December 2017. At that time, analyst Willy Wu drew attention to the surge in BTC purchases by small investors.
Visa cards backed by cryptocurrency are in increasing demand
Visa accounts for $2.5 billion of transactions on cards backed by cryptocurrency. Visa’s group of cryptocurrency platform partners has grown from 54 to 65 trading partners. Cool? Let’s go into more detail.
Visa reported a significant increase in spending using credit cards backed by cryptocurrency: in the last quarter of 2021, their number exceeded 2.5 billion US dollars.
The report was published on January 27 during the last earnings call. It corresponds to the first fiscal quarter of 2022, which displays the months of October, November and December 2021, according to US tax law.
The report showed that the growth in the use of this type of product was exponential, since, according to detailed information, the $2.4 billion registered in one quarter corresponds to more than 70% of the total volume transferred to fiscal year 2021 (from September 2020 to September 2021).
This growth is also evidenced by the number of trading partners currently offering cards backed by Bitcoin and cryptocurrencies. Known as “cryptocurrency wallet partners”, they have grown from 54 to 65 members, including platforms such as Coinbase, Crypto.com, Circle and BlockFi. Ledger has also launched cryptocurrency services with Visa.
In an interview with CNBC, Alfred Kelly, CEO of Visa, said: “We will continue to support each other in the cryptocurrency space, and our strategy is to be a key partner,” referring to Visa’s position regarding Bitcoin and the cryptocurrency ecosystem.
This growth is interesting because it coincides with the months in which Bitcoin experienced several record highs, with an average price above 55 thousand US dollars. That’s compared to the more than $38,000 it’s currently trading at.
Visa has become a Bitcoin partner
Visa has already expressed its position in favor of the entire Bitcoin and cryptocurrency ecosystem. In December 2021, a company representative stressed that cryptocurrencies will change business around the world, as in recent years they have reported on the growing interest of their customers in using crypto assets.
In addition, it is known that Visa currently offers consultations in the field of Bitcoin and cryptocurrencies, providing a global network of consultants that will allow business owners to implement such services.
Visa has even made it possible to provide cryptocurrency-based card services in unstable and economically vulnerable places, such as Venezuela, whose citizens cannot use international financial services due to the sanctions imposed. In this case, it is a prepaid Visa card from Glufco, which allows you to spend cryptocurrencies through online platforms or businesses that accept Visa credit cards, such as Netflix, Amazon, Disney+ and many others.