How is Wealth Distribution on the Bitcoin Network?

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Who controls the supply of bitcoin, which has started to attract more institutional investors? Glassnode answered this question in the latest report he shared.

According to the btc distribution report, which is prepared by considering the bitcoin addresses of exchanges and miners separately, there is an increase in the number of institutional investors while the supply of bitcoin increases.

Distribution of Bitcoin addresses and number of participants

Bitcoin addresses are classified as follows, depending on the amount of btc they hold:

  • Shrimp (<1 BTC): ~ 22 million participants
  • Cancer (1-10 BTC): ~ 560 thousand participants
  • Octopus (10-50 BTC): ~ 72 thousand participants
  • Fish (50-100 BTC): ~ 11 thousand participants
  • Dolphin (100-500 BTC): ~ 10 thousand participants
  • Shark (500-1,000 BTC): ~ 1,500 participants
  • Whale (1,000-5,000 BTC): ~ 2 thousand participants
  • Humpback whale (> 5,000 BTC): ~ 220 participants
  • Exchanges: ~ 15 participants
  • Miners: ~ 51 thousand participants

Addresses in stock exchanges and belonging to miners are considered outside this classification. While the amount of bitcoin available on exchanges is 2.36 million, the amount of btc held by miners is 1.81 million. Accordingly, the distribution of total bitcoin addresses is as follows:

Corporate companies, funds, over-the-counter markets, billionaires are among those who hold the most bitcoin. These high-value institutions and individuals, belonging to the whale and humpback category, own 31% of bitcoin. However, those who own 23% of the total bitcoin supply are retail investors who make up the shrimp, crab, octopus classifications.

Investors in the shrimp, crab, octopus and fish group have been buying more bitcoins since 2017. Especially the baskets of investors in the shrimp and crab group increased by 130%. However, addresses holding over 100 bitcoins suffered between 3% – 7% btc loss during the same period.

Most of the supply is in the hands of 2%

When calculating only through addresses on the network, without taking into account the amount of bitcoin owned by exchanges and miners, it is concluded that 2% of the network participants control 71% of the total bitcoin supply.

Increase in whales bullish for bitcoin

CTO Rafael Schultze-Kraft pointed out the increase in the number of whales at the end of the report. Since 2020, the amount of bitcoin held by whales and humpback whales has increased by 13.4%. The number of these whales has increased by more than 27% and exceeded 2 thousand 160. According to the CTO, this increase is a bullish sign for bitcoin.

Bitcoin distribution is improving

Analyst Willy Woo made some comments on Glassnode’s report. Expressing that the distribution of Bitcoin has become healthier, Woo; He stated that small investors are getting stronger, whales are increasing and humpback whales are beginning to decrease, and that total supply is held by addresses holding roughly less than 100 btc. While doing this calculation, the analyst stated that the bitcoin in circulation was 14.9 million and handled 3.7 million bitcoins as lost.

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