Bitcoin: 74% in the Hands of Small Investors! What About the Future?

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 explore the explanations.

Domination of Small Investors in Bitcoin

Grayscale Research has published a study entitled “Demystifying Bitcoin’s Ownership Landscape.” Contrary to what one might think, the majority of Bitcoin holders are small investors.

In fact, the numbers reveal that about 74% of Bitcoin addresses hold less than 0.01 BTC, which is approximately $376 at the time of writing these lines. This situation thus strongly contrasts with other high-yield assets that are generally reserved for accredited investors.

These figures testify to the accessibility of Bitcoin, leading to a decentralized and open ownership structure. The study also reveals that only 2.3% are large holders, meaning they own more than 1 BTC.

The large Bitcoin wallet addresses are owned by crypto exchanges and government entities. We can mention major exchanges such as Binance and Robinhood Markets Inc.

Significant Implications for the Market

According to Grayscale, as reported by Nasdaq.com, approximately 40% of the total BTC supply could be linked to identifiable owner groups. These include exchanges, government entities, public and private companies such as Tesla. This segment also includes mining companies that secure the Bitcoin network.

Grayscale also speaks of the concept of “sticky supply” which refers to Bitcoin owners likely to hold their investments for the long term. 14% of the BTC supply has not been moved for more than 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 strengthen the effect of demand-related changes on the price of Bitcoin.