Bitcoin is seeing a surge in popularity among everyday investors, with the number of wallets holding $1,000 or more jumping a whopping 20% in 2024 so far, according to a new report by Fidelity Digital Assets.

This surge in "small fry" investors suggests a broader adoption of Bitcoin, with more "average people" taking a bite out of the digital gold. The report highlights a record high of 10.6 million such wallets in March 2024, nearly doubling the numbers from 2023.

However, there's a twist to the tale. The price increase of Bitcoin itself could be inflating the number of wallets reaching the $1,000 threshold. Additionally, some existing wallets might be consolidating their holdings, making them appear as new entries.

Interestingly, the report also reveals a declining trend in the amount of Bitcoin held on exchanges. This shift towards self-custody likely stems from the string of exchange issues witnessed in 2022. Investors are taking control of their own Bitcoin, with exchange balances dropping nearly 30% from their peak. This trend highlights the growing importance of alternative custody solutions.

The report throws another curveball: the behavior of long-term holders, or "hodlers." Traditionally, hodlers tend to accumulate Bitcoin closer to the halving event, a pre-programmed scarcity measure in Bitcoin's code. However, 2024 seems different. Hodlers are experiencing significant outflows, possibly due to concerns about Bitcoin being overvalued before the halving. This shift in hodler behavior adds another layer of intrigue to the ever-evolving Bitcoin landscape.