"2% of accounts control 95% of all #Bitcoin "

Wrong.

BTC ownership is much less concentrated than often reported – and has dispersed over time.

Meanwhile, whale supply has increased – suggesting institutional investors arriving.

Report: http://insights.glassnode.com/bitcoin-supply-distribution

THREAD

1/ We split the #Bitcoin supply into network participants of varying sizes, treating miners & exchanges separately.

Our estimates:

- Whale, humpback (>1k BTC): ~31%
- Fish, dolphin, shark (50-1k BTC): ~23%
- Shrimp, crab, octopus (<50 BTC): ~23%
- Exchanges: ~13%
- Miners: ~10%

2/ Importantly, over the past years we've seen a continuous dispersion of the #Bitcoin supply distribution, shifting more BTC towards smaller holders – a trend that continues to endure.

3/ Specifically, the #BTC supply held by the smallest participants (shrimp + crab) has increased by 130% since 2017, the 2nd smallest (octopus + fish) by 14%.

Large entities (dolphins + sharks, whales + humpbacks) have decreased their $BTC holdings by -3% and -7%, respectively.

4/ Nonetheless, on a more short-term time window, we have seen a significant increase of #Bitcoin whales (and their supply) since 2020.

This suggests that institutional investors, funds, family offices, and other HNWI have been entering the space.

Yes, this is bullish.

5/ Below are the number of estimated network participants in each bucket.

Not much surprises there, the distribution is heavily skewed towards small #Bitcoin holders.

6/ Relating the number of participants to the supply they hold, leads us to the distribution curve below suggesting that 2% of entities control at most ~71% of #Bitcoin – significantly lower than the high concentrations usually reported, and likely and upper bound (see article).

7/ These numbers are estimates, and to the best of our knowledge the most accurate to date. Many aspects are not considered in this analysis – please refer to the discussion in the article.

All data from @glassnode.

Big shout-out to Kilian and @woonomic for invaluable feedback!