Bitcoin: Can Retail Investors Afford to Buy BTC
As Bitcoin (BTC) Slumps Due to Market Crisis, New Demand Comes into Play
Despite the price drop, buying 1 BTC is becoming increasingly difficult for new investors. This indicates a decrease in the availability of the asset and a change in investor behavior.
Why Owning 1 Bitcoin Is Now An Achievement
Glassnode, an on-chain analytics platform, reported a 1% increase in the volume of bitcoin held by new buyers, up from 4.88 million to 4.93 million BTC over the past five days, indicating a surge in new demand.
The amount of bitcoin held by new buyers. Source: X/Glassnode
Buying a whole coin has become too expensive for most retail investors. According to CoinGecko, the number of wallets holding at least 1 BTC has dropped significantly. This is due to the rising price of the leading cryptocurrency.
The report found that only about 1 million addresses worldwide hold 1 or more bitcoins. Most of these owners accumulated the coins before 2018, when prices were significantly lower — especially in early 2017, when bitcoin was trading around $1,000.
CoinGecko reported that from 2010 to 2017, the number of such addresses grew from 50,000 to 700,000. Since 2018, only 300,000 addresses have been added, and now their total number is just over 1 million.
“When Bitcoin surpassed $100,000, owning a whole Bitcoin became 100 times more expensive than it was in 2017. We observed that the number of whole Bitcoin owners decreased after 2024, coinciding with the approval of Bitcoin ETFs and institutional adoption,” the report says.
Who Gets All the Bitcoins
CoinGecko speculated that the rise of institutional investors has increased the concentration of Bitcoin wealth among the wealthiest individuals. This could explain the decline in the number of owners of whole Bitcoins, as some early holders who accumulated assets before 2018 may be selling them to institutional buyers for long-term profits.
Additionally, the report notes that when accounting for lost coins, exchange reserves, and institutional holdings, less than 4 million BTC remain available for retail purchase.
However, CoinGecko noted that fractional ownership could still represent significant wealth as the price of Bitcoin rises.
“The most optimistic Bitcoin predictions suggest that one coin could be worth $500,000 or even $1 million. If this comes true, owning even 0.1 Bitcoin (worth $50,000-$100,000 at these prices) would be a significant amount of capital,” the report says.
What Crypto Industry Leaders Think
Industry leaders are rethinking the concept of owning a full Bitcoin. Changpeng Zhao has suggested that 0.1 BTC could become a new symbol of success, comparable to owning a house, and become the new “American Dream.” This reflects changing perceptions as Bitcoin matures as an asset.
“Today, the American dream is owning a house. In the future, it will be owning 0.1 BTC, which will be worth more than a house in the US,” CZ said.
Another factor influencing investor behavior is Bitcoin's declining volatility. Since 2022, BTC has shown less volatility than major tech stocks like Nvidia.
“Since 2024, despite new highs and significant corrections, volatility continues to decline. It is now close to a five-year low. This is expected for a maturing asset. The lower the volatility, the more attractive Bitcoin becomes for institutional investors,” Ecoinometrics reports.
This stability is consistent with expectations for established assets, but contrasts with the high-risk, high-return nature that attracts many retail investors.
Source: cryptonews.net
