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"2% of accounts control 95% of all #Bitcoin "
BTC ownership is much less concentrated than often reported – and has dispersed over time. Meanwhile, whale supply has increased – suggesting institutional investors arriving. Report: insights.glassnode.com/bitco…
1/ We split the #Bitcoin supply into network participants of varying sizes, treating miners & exchanges separately.
Our estimates: - Whale, humpback (>1k BTC): ~31%
Fish, dolphin, shark (50-1k BTC): ~23%
Shrimp, crab, octopus (<50 BTC): ~23%
Exchanges: ~13% -
2/ Importantly, over the past years we've seen a continuous dispersion of the #Bitcoin supply distribution, shifting more BTC towards smaller holders – a trend that continues to endure.
3/ Specifically, the #BTC supply held by the smallest participants (shrimp + crab) has increased by 130% since 2017, the 2nd smallest (octopus + fish) by 14%. Large entities (dolphins + sharks, whales + humpbacks) have decreased their $BTC holdings by -3% and -7%, respectively.
4/ Nonetheless, on a more short-term time window, we have seen a significant increase of #Bitcoin whales (and their supply) since 2020. This suggests that institutional investors, funds, family offices, and other HNWI have been entering the space. Yes, this is bullish.
5/ Below are the number of estimated network participants in each bucket. Not much surprises there, the distribution is heavily skewed towards small #Bitcoin holders.
6/ Relating the number of participants to the supply they hold, leads us to the distribution curve below suggesting that 2% of entities control at most ~71% of #Bitcoin – significantly lower than the high concentrations usually reported, and likely and upper bound (see article).
7/ These numbers are estimates, and to the best of our knowledge the most accurate to date. Many aspects are not considered in this analysis – please refer to the discussion in the article. All data from @glassnode. Big shout-out to Kilian and @woonomic for invaluable feedback!