What happened?
Recently, data indicates that Bitcoin wallets holding at least 10 BTC now control over 82% of the total Bitcoin supply. Institutional investors and large traders are increasingly dominating the Bitcoin market, absorbing much of the newly mined coins. This concentration is moving away from Bitcoin’s original decentralized vision.
Who does this affect?
The growing centralization of Bitcoin affects retail investors, who now hold only a minority of the total supply. As major institutions accumulate more Bitcoin, smaller investors face increased market volatility and liquidity challenges. The dominance of large holders could limit access and opportunities for everyday investors.
Why does this matter?
This concentration has significant implications for Bitcoin’s market dynamics, potentially accelerating scarcity and affecting price stability. As large players like Strategy absorb new supply, they drive an artificial scarcity akin to Bitcoin’s halving events, increasing demand and price volatility. This shift could create barriers for market entry and exacerbate wealth inequality within the crypto ecosystem.