One of the more interesting data points for any asset is the distribution of holders. Distribution can play a large role in the trading dynamics of the asset as well as overall market sentiment. Additionally, because blockchain technology is completely public, the distribution of holders is known, providing unprecedented insight into the dynamics of Bitcoin.
Do not miss:
Bitcoin (BTC) and cryptocurrencies in general are known to have many large holders – sometimes referred to as whales – who influence the price through large transactions. Others can see these trades and react to them, often resulting in more volatility. Additionally, some whales acquire tokens and hold onto them for a longer period of time. This can effectively reduce the amount of tradable token supply, which can have a positive impact on the price. Large token holders can have a huge impact on the price of Bitcoin.
The price of Bitcoin has risen astronomically over the last decade. This is what allowed some retail investors to amass huge wallets early in BTC’s history. Since its launch, Bitcoin has risen by more than 575,000%. A handful of institutions have dabbled in Bitcoin in recent years. Examples include MicroStrategy Inc., which owns more than 1% of the total supply, and BlackRock Inc., which launched a Bitcoin exchange-traded fund (ETF) earlier this year. The largest Bitcoin holders are a mix of early investors and institutional buyers.
With this in mind, the actual numbers behind Bitcoin distribution are still surprising:
-
46.8 million wallet addresses have more than $1.
-
10,000 wallets hold more than $10 million in Bitcoin.
-
100,000 wallets have more than $1 million.
-
The top 105 wallets contain almost 3 million BTC, which is about 15% of the total supply.
-
The top 2,000 wallets hold 40% of the total supply.
-
The smallest 25% of addresses hold less than 0.03% of the supply.
-
The largest wallet address holds approximately 250,000 BTC or 1.26% of the total supply.
While this may seem extremely concentrated, it is less concentrated than other cryptocurrencies. For example, the 15 largest Dogecoin (DOGE) wallets account for 50% of the total supply. Compared to most other assets, Bitcoin is still very concentrated.
Furthermore, the data does not paint the true picture of Bitcoin supply. Some investors hold their tokens in many wallet addresses. For example, Bitcoin’s anonymous creator, Satoshi Nakamoto, reportedly holds 600,000 to 1.1 million BTC across an estimated 20,000 wallet addresses. Although he is probably the largest holder, it does not appear in the distribution because it is spread across a large number of wallets.
Even though the Bitcoin chain is completely public and viewable, there are still ways to get around it. This ultimately means that the supply of Bitcoin is even more concentrated than the distribution on the surface.
Continue reading:
“The Active Investor’s Secret Weapon” Level up your stock game with the #1 trading tool for “news and everything else”: Benzinga Pro – Click here to start your 14-day trial now!
Get the latest stock analysis from Benzinga?
This article Bitcoin Millionaires Reveals: How Many Investors Hold BTC Worth $1 Million or More? originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.