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FameEX Hot Topics | Grayscale Report Examines Bitcoin's Widespread Ownership and Robust Supply Dynamics
2023-12-01 16:28:55
A recent report by Grayscale Investments challenges the notion that Bitcoin (BTC) ownership is highly concentrated, revealing that the distribution of ownership is more widespread than commonly believed. The report highlights key findings about Bitcoin's ownership patterns and its potential implications for the cryptocurrency's future. Grayscale Investments, a leading digital asset management firm, conducted an analysis of Bitcoin ownership. The study focuses on the concept of "sticky supply" within the Bitcoin ecosystem, examining its relevance in the current landscape and its potential impact on the cryptocurrency's behavior.
Contrary to the perception that Bitcoin is primarily held by a few large entities, the report reveals that a significant portion of Bitcoin addresses belong to individual retail investors globally. In fact, 74% of Bitcoin addresses hold less than $350 worth of BTC each. This finding suggests that Bitcoin ownership is more evenly distributed among retail investors than previously thought.
However, the report also highlights the presence of substantial Bitcoin holdings by institutional players, including crypto exchanges, mining companies, governments, publicly traded companies like MicroStrategy, exchange-traded funds (ETFs), trading platforms, and addresses that have been inactive for over a decade. These institutional entities collectively control approximately 40% of the Bitcoin supply. One notable aspect of Bitcoin's ownership dynamics identified in the report is the concept of "sticky supply." Some ownership groups exhibit a tendency to hold onto their Bitcoin holdings during price fluctuations, demonstrating resilience to selling pressures. For instance, addresses that have remained inactive for ten years recently reached an all-time high. Additionally, miner and exchange balances have remained relatively stable despite Bitcoin's inherent price volatility. This characteristic of inelasticity in certain Bitcoin ownership groups could have significant implications for the cryptocurrency's price dynamics. It suggests that external events, such as the Bitcoin halving scheduled for 2024 or the potential approval of a U.S. spot Bitcoin ETF, could have a more pronounced impact on Bitcoin's price due to the presence of these illiquid supply sources. Grayscale's analysis underscores the growing mainstream acceptance of Bitcoin, as it is now held by both individual retail investors and institutional entities. The report also suggests that Bitcoin's limited supply may contribute to positive market dynamics, potentially driving further adoption and investment in the cryptocurrency. In conclusion, the report emphasizes the potential for Bitcoin's ownership dynamics to play a pivotal role in shaping the cryptocurrency's response to macroeconomic events. If the current trends persist, Grayscale's research team anticipates that ownership patterns could increasingly amplify the impact of external factors on Bitcoin's price behavior. This implies that Bitcoin's decentralized ownership structure may become a more influential factor in its price movements over time. Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.
