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Part of Bitcoin’s supply held by retail investors hits all-time high: Glassnode – Decipher

About 17% of BitcoinThe total circulating supply is now held by retail investors, according to recent public blockchain data curated by analytics firm Glassnode.

“Not perfect yet, but solid for a 12-year-old asset and definitely heading in the right direction,” tweeted Will Clemente, analyst at Reflexivity Research, in response to the data. “Bitcoin’s supply disperses over time, while the fiat holder base concentrates on whales over time.”

A Glassnode chart shared by Clemente shows the percentage of Bitcoin supply held by retail investors rising steadily since 2011. Glassnode defines “retail” as holding less than 10 BTC in a wallet, with a current value of nearly $169,000.

Data from IntoTheBlock, another blockchain intelligence provider, seems to support this hypothesis. The firm’s page on the distribution of Bitcoin holdings shows these addresses owning 0-10 BTC represent 17.3% of the total Bitcoin supply.

This figure was below 12% at the start of 2020, but began to grow exponentially in 2022. Other periods of strong retail accumulation included late 2013 through early 2014, as well as the end of 2017, every late bull market/early bear market period for Bitcoin. .

Glassnode previously defined “entities” as separate owners of Bitcoin, including clusters of blockchain addresses that could plausibly belong to the same owner. In February 2021, he found that entities with less than 10 BTC accounted for 13.9% of supply, a figure that “has grown over the life of Bitcoin”.

Bitcoin has often been criticized for its high concentration of ownership, which some say undermines proponents’ claims of decentralization. In November 2020, Bloomberg claims that only 2% of accounts controlled 95% of all Bitcoins.

However, like Glassnode noted in a direct answer, this figure did not take into account the difference between individuals and wallet addresses, including exchange addresses, which may hold Bitcoin on behalf of thousands or even millions of separate users.

Bitcoin also appears to have a more even supply distribution across different percentiles than other major cryptocurrencies, including Ethereum and Dogecoin. According to CoinMarketCapapproximately 64% of DOGE and 38% of ETH are held by addresses representing at least 0.1% of total supply, compared to only 9% of all Bitcoin.

Meanwhile, additional data from IntoTheBlock shows that owners of over 100 BTC represent a decreasing share of total ownership over time – 69.5% in 2013 compared to 59.8% today.

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