Small and medium hodlers control 40% of the Bitcoin supply — data

Possession of bitcoin (BTC) is becoming more decentralized by the day, data shows, reducing fears that the stock is controlled by elites.

Glassnode’s data, compiled by statistician Willie Wu on February 3, shows that the number of small bitcoin holders and token holders on behalf of customers continues to grow.

Bitcoin in the hands of children

Although BTC/USD has hit record highs in recent weeks, more retail investors are stepping into the market, not less. At the same time, long-time BTC traders, known as humpbacks, are not participating in the action, citing their status as the largest and oldest investor whales in the field.

The distribution is improving, Wu summarized in a series of tweets about the data.

An estimated 40% of the available supply is controlled by small/medium holders (Distribution of Bitcoin Supply). Source: Willie Wu/Glassnode.

These figures help allay fears of centralization, which have been fueled by recent articles in the mainstream press about bitcoin’s price rise and the publicity it has generated.

In an article from 31. In January, Bloomberg used a report from research organization Token Analyst to claim that bitcoin’s infrastructure is more centralized than ever, raising concerns about the security and viability of what is touted as a decentralized network.

In late December, Forbes called the mining industry the designated victim of Chinese centralization.

Meanwhile, proponents continue to point out that bitcoin is an antidote to the centralization that has undermined the world’s currencies.

How did we get here? Centralization, complacency and disconnection from monetary reality, wrote commentator Marty Bent in his latest blog post at 1. February.

Dealer : Large buyers will eventually sell

However, concerns remain about the impact of the large sales on distribution if new institutional buyers decide to take profits.

For popular trader Scott Melker, such a scenario is a matter of if, not when, and the idea that institutions will last indefinitely is a myth.

MicroStrategy and Grayscale strengthened their positions this week. The former bought 295 BTC on Tuesday, while bitcoin assets under the latter’s management currently stand at $22.5 billion.

Grey BTC shares. Source: Bybt.com.

Regardless of all the reports about hedge funds investigating bitcoin, we think most of them will end up making a profit, whether they own GBTC or hold their own coins. So our answer is yes, institutions will sell their bitcoins, he wrote this week.

But it is reasonable to assume that many companies and funds will add bitcoin to their balance sheets in some form to protect themselves from inflation rather than to make a short-term profit, which will remove some bitcoin from the market for good.

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