In the midst of market volatility, Bitcoin continues to attract investors. However, one segment of investors – those holding over 100 BTC – is shrinking, according to on-chain data.
The Decline in Bitcoin Wallets Holding Over 100 BTC
Santiment, a firm specializing in on-chain analytics, recently discussed the ongoing adoption of Bitcoin in their online post. The pivotal indicator in this discourse is the ‘Supply Distribution’, which sheds light on various aspects of Bitcoin holdings, particularly the categorization of investors as per their digital wallet balance.
Investors are grouped into cohorts depending on their current balance. For instance, the cohort with 1 to 10 coins comprises wallets holding any number of Bitcoins between 1 and 10. For our discussion, however, the relevant categories are: the 0 to 0.1 coins group, the 0.1 to 100 coins group, and 100+ coins group. The first two groups typify smaller investors, often referred to as shrimps, crabs, or dolphins, while the last group represents the big fish of the market – the sharks and whales.
Refer to the chart below, shared by Santiment, to understand the trend in Bitcoin Supply Distribution for these cohorts over the past few months:
What Does the Data Show?
Interestingly, the supply distribution for both 0 to 0.1 coins and 0.1 to 100 coins groups has increased. In simple terms, new addresses within these categories have emerged on the network in recent weeks. In the past month alone, there has been an increase of 37,390 in the 0 to 0.1 coins group and 12,754 in the 0.1 to 100 coins group. The growth witnessed among these two groups, however, did not follow a straightforward trajectory, particularly for the 0 to 0.1 coins cohort. It appears the early dip in Bitcoin’s price led to a surge in the address count, but as volatility persisted, some investors chose to exit the market.
Despite this, the net increase in Bitcoin adoption during this volatile period may indicate positive potential for the cryptocurrency. However, the trend among the hefty investors, the sharks and whales, might present a bullish sign. Over the past month, the count of wallets holding 100+ coins has reduced by 6. While this may not seem significant, the influence these large holders wield within the market is quite considerable.
Therefore, the decline in the count of shark and whale addresses could hold more weight than the adoption by smaller entities. As Santiment suggests, “Keep an eye on the 100+ BTC wallets. A growth in their number might signal a crypto-wide breakout on the horizon.”
The Current State of Bitcoin’s Price
Bitcoin’s price has been gradually recovering from the recent plunge, now surging back above $90,000.
FAQs
What is the trend in Bitcoin wallet counts with 100+ BTC?
In the recent weeks, there’s been a decrease in the number of wallets holding 100+ BTC, signaling a possible decrease in engagement by major investors.
How has the Bitcoin Supply Distribution changed recently?
The Supply Distribution for smaller investors (those holding 0 to 0.1 coins and 0.1 to 100 coins) has seen an increase, indicating increased adoption.
How has the recent volatility in Bitcoin’s price affected its adoption?
Despite volatility, Bitcoin’s adoption has increased, particularly among smaller investors. However, this has been accompanied by a slight decrease in the count of larger investors or ‘whales’.
What’s the current status of Bitcoin’s price?
Bitcoin’s price has seen a recovery from the recent dip, with its value now back over $90,000.
