The data shows that Bitcoin (BTC) ownership is becoming more decentralized every day, easing concerns that the supply is being controlled by the elite.
Glassnode data, reproduced by statistician Willie Wu on February 3, shows that the number of small bitcoin holders and those who hold coins on behalf of clients is increasing.
Bitcoin in the hands of a little man
Despite the rise in BTC / USD to record highs in recent weeks, more, not less, small investors are coming to us. At the same time, permanent bitcoin traders, known as “hump” due to their status as the oldest and oldest whale investors, are not withdrawing the money.
“Distribution is improving,” Wu summed up in a series of tweets about the data.
“At a rough estimate, 40% of available offerings are controlled by small / medium-sized owners (
Bitcoin distribution chart. Source: Willie Wu / Glassnode
The numbers help mitigate central issues raised by recent articles in the regular press amid rising Bitcoin prices and associated publicity.
In an article dated January 31, Bloomberg used a report from research organization Token Analyst to explain that “Bitcoin’s infrastructure is becoming more centralized than ever before” and that it “raises concerns about the safety and viability of what is proposed to be decentralized. Networks.”
In late December, Forbes described the mining as a victim of “central China”.
Meanwhile, proponents continue to highlight Bitcoin as an antidote to the centralization that is eroding fiat currencies around the world.
“How did you get to this point of view?” Commentator Marty Bint wrote in his last post on his blog on February 1: Centralization, complacency and disconnection from the reality of money.
Trades: Big buyers will sell sooner or later
However, there is still little concern about big sales distribution if the new institutional buyers choose to make a profit.
For famous trader Scott Melker, this scenario is a question of “if” and not “when,” and the idea that institutions will remain indefinitely is a myth.
MicroStrategy and Grayscale both increased their positions this week, buying the former 295 BTC on Tuesday, and the latter’s assets in Bitcoin under management are now $ 22.5 billion.
Despite all the reports appearing on hedge funds searching for Bitcoin, we believe that most of them will be making money at some point, whether they own a GBTC or have their own coins. So our answer is yes, institutions will sell bitcoins, “he wrote this week.
“But it is reasonable to believe that many companies and funds will add bitcoins to the balance sheet in one form or another as a hedge against inflation, rather than making short-term profits and leaving some bitcoins out of the market forever.”