Bitcoin 'Young Investment' Wallets at Highest Level Since February 2018

New investors are entering the bitcoin market at a faster pace and possibly creating upward pressure on prices, on-chain data shows.

AccessTimeIconSep 16, 2020 at 8:42 p.m. UTC
Updated Sep 14, 2021 at 9:57 a.m. UTC

New investors are entering the bitcoin market at a faster pace and possibly creating upward pressure on prices, on-chain data shows. 

Bitcoin Young Investment Wallets
Bitcoin Young Investment Wallets
  • The number of “young investment” wallets (those that are one to three months old and rarely send bitcoins) has jumped to 2,254,667 this month, the highest level since February 2018, according to data provided by the blockchain analysts firm Chainalysis. That's double from 1,162,632 six months ago.
  • The growth curve was much flatter in the first two months of the year but went near-parabolic following bitcoin's March crash. 
  • "It looks like new people are entering the market, buying bitcoin and putting it in wallets for long-term investment," Chainalysis' economist Philip Gradwell told CoinDesk. 
  • Investors took advantage of the 40% price drop to levels below $4,000 observed on March 12 and have continued to pour money into the top cryptocurrency ever since.
  • "Overall, the data suggests that buying pressure for bitcoin is increasing, and the supply available to buy is reducing as new purchases likely get locked up for the long term," Gradwell said. 
  • Bitcoin is trading near $10,900 at press time, representing a 52% gain on a year-to-date basis, but still down 83% from the record high of $20,000. 
  • The number of young wallets surged from 791,289 to 2,000,000 in the second half of 2017 as bitcoin rallied by $2,000 to $20,000. The investor interest remained strong even as prices fell back sharply to $6,000 in February 2018. 


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Read more about