Despite facing tough times since May 2022, cryptocurrencies have shown strength and continued to blend into the global financial systems. The year 2024 began with the US approving the first spot Bitcoin (BTC) exchange-traded funds (ETFs), leading to a substantial rise in investments in the cryptocurrency market.

More Wallets Holding at Least $1 in BTC

Bitcoin's increasing popularity is clear from the rise in the number of addresses holding at least $1 worth of BTC. In 2022, there were around 35 million such addresses, which was about 0.4% of the world's population. By May 2024, this figure had jumped to 84 million addresses, indicating that roughly 1% of the world's 8.1 billion people now own some BTC. It's worth noting that since investors often use multiple addresses, these figures might not be precise. The surge in the number of addresses is also linked to Bitcoin's rising price. Currently valued at around $70,000, Bitcoin has seen an over 66% increase in value since the start of the year.

Key Drivers of the Cryptocurrency Market

Several factors are fueling the Bitcoin market, including the ongoing cryptocurrency boom and optimistic forecasts related to the upcoming fourth Bitcoin block reward halving in April. Additionally, the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in January has played a significant role in legitimizing Bitcoin, drawing more traditional investors into the market.

Although some cryptocurrency supporters criticize the SEC’s stringent regulations, they acknowledge that the US regulator's actions likely help to present cryptocurrencies as more legitimate investments. This increased regulatory scrutiny brings a sense of order to the previously chaotic market, making it more appealing to traditional investors.

In conclusion, Bitcoin's adoption is on the rise, as evidenced by the increasing number of wallet addresses. With regulatory approval and positive market factors, Bitcoin continues to attract more investors, solidifying its place in the global financial system.