Bitcoin price fell by 9.8% last week, registering its most significant weekly decline since mid-March.
The currency hit a two-week low of $8,630 early Monday, with prices last seen at $8,730—which is down more than 11% from a post-halving high of $9,960 on May 18.
The recent price drop is, in turn, causing the number of addresses holding smaller amounts of Bitcoin to rise.
The number of unique addresses that are holding at least 0.01 BTC (approximately $87 at current price) rose to a new high of 8.47 million on Sunday, according to blockchain intelligence firm Glassnode.
At the same time, the number of addresses holding at least 0.1 BTC (roughly $870) rose to a lifetime high of over 3 million households on Friday.
Some believe the increased demand during the price dip may be associated with the idea that Bitcoin could repeat history by charting a price rally over the next 12 months.
The cryptocurrency experienced a 30% pullback in the four weeks that followed its second reward halving on July 9, 2016. However, the decline was erased in the months that followed, and prices rallied to record highs by March 2016.
“The price pullback was expected, and the long-term bias remains bullish,” said QCP Capital’s co-founder and managing director Darius Sit. “We would accumulate if prices drop to the $6,000-$8,000 range.”
Of course, the number of small addresses doesn’t necessarily represent new individual investors because a single person can hold cryptocurrency in more than one address. On top of that, exchanges and custodial services also hold Bitcoin in multiple addresses.
“Wallet management systems of virtual asset service providers have become more complex and granular.