A large number of small investors are entering into Bitcoin trading as whales, who have dominated the market over the years, are losing their foothold on it. The small investors have gained more dominance in the overall BTC supply.
The dominance of crypto whales has seen a sharp dip as the market is currently seeing inflows of smaller retail investors. The shift comes into the fore as investors are targeting the king crypto due to its status as a “hard asset” – which many be sparking a trend of accumulation amongst investors.
A few groups are particularly behind the trend in young investors. A JP Morgan analysis shows that this group is widely accepting Bitcoin as both a store of value and as an alternative to the U.S. Dollar.
The small investors, who hold less that 10 Bitcoin, are gaining control over the recent circulation of Bitcoin.
Glassnode explains that over the past five years, the percentage of the BTC supply owned by entities with less than ten BTC has grown by nearly 9%.
“Control of Bitcoin’s supply has been steadily shifting towards smaller entities. The % of supply owned by entities holding ≤ 10 BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%.”