Bitcoin ownership is predominantly in the hands of small investors, with 74% holding less than 0.01 BTC. Grayscale Research deciphers this reality, highlighting the democratization of crypto. What impact could this have on its future? Is the future of Bitcoin in the hands of small investors? Let’s find out the explanations.
Domination of small investors in Bitcoin
Grayscale Research published a study entitled “Demystifying Bitcoin’s Ownership Landscape”. Contrary to what one might think, the majority of Bitcoin holders are small investors.
Indeed, the figures reveal that approximately 74% of Bitcoin addresses hold less than 0.01 BTC. Which equates to approximately $376 at the time of writing. This situation, which contrasts sharply with other high-yielding assets which are generally reserved for accredited investors.
These numbers speak to the accessibility of Bitcoin, leading to a decentralized and open ownership structure. The study also reveals that only 2.3% are large holdersi.e. holding more than 1 BTC.
Large BTC wallet addresses are held by crypto exchanges and government entities. We can cite large exchanges such as Binance and Robinhood Markets Inc.
Important implications on the market
According to Grayscale, reported by Nasdaq.comemphasizes thatApproximately 40% of the total BTC supply could be linked to identifiable ownership groups. They include, among others, stock exchanges, government entities, public and private companies such as Tesla. This segment also includes mining companies that secure the Bitcoin network.
Grayscale also talks about the concept of “the sticky offer” which refers to Bitcoin owners likely to hold onto their investments for the long term. 14% of BTC supply has not been moved in over 10 years. This could include original coins belonging to the alleged creator of Bitcoin, lost coins, or coins held by long-term investors.
This high percentage could enhance the effect of demand-driven changes on the price of Bitcoin.
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