The Majority of Bitcoin Held by Top 1% of Addresses
A recent analysis by Glassnode, a blockchain data platform, revealed that the top 1% of Bitcoin addresses possess nearly 99% of the cryptocurrency’s circulating supply. This marks a three-month high, with the last instance occurring in June 2023. However, it’s important to note that many of these addresses belong to exchanges that hold users’ crypto on their behalf.
Continued Accumulation by Top BTC Addresses
Glassnode estimates that the top 1% of BTC addresses currently hold approximately 98.913% of the total supply, equivalent to around 19.5 million coins. These investors have been accumulating Bitcoin since June, pausing briefly when the price failed to surpass $30,000. However, when BTC experienced a mini-bull run in July and surpassed this level, interest from whales increased once again.
Record Low for Addresses Holding 1,000+ BTC
On a different note, CryptoPotato reported that the number of Bitcoin addresses holding 1,000 BTC or more has dropped to levels last seen in 2019. As of September 27, there were only 1,997 wallets holding over $26.4 million worth of Bitcoin. This downward trend has been ongoing throughout the past year, which witnessed several market collapses.
Hot Take: Concentration of Wealth in Bitcoin
The concentration of Bitcoin ownership among a small number of addresses continues to be a topic of discussion within the cryptocurrency community. While it may raise concerns about wealth inequality and centralization, it is also important to consider the role of exchanges and institutional investors in this distribution. As Bitcoin evolves and more individuals participate in the market, the balance of ownership may shift over time. Nevertheless, the current data highlights the significant influence of a select few on the cryptocurrency’s market dynamics.
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