On-chain data indicates that the Bitcoin network continues to witness adoption despite recent volatility. However, it’s worth noting that one particular group of investors is experiencing a decline.
Bitcoin Addresses With 100+ BTC Are Shrinking In Number
In a recent post on X, the on-chain analytics firm Santiment discussed the ongoing trends in Bitcoin adoption. The key metric of focus is the Supply Distribution, which helps delineate the number of addresses associated with specific cohorts of coin holders.
Investors are categorized into various groups based on their Bitcoin holdings. For instance, the “1 to 10 coins” cohort encompasses all wallets holding between 1 and 10 BTC. For our discussion, we will focus on three significant aggregate ranges: 0 to 0.1 coins, 0.1 to 100 coins, and 100+ coins. The first two categories include smaller investors, often referred to as “shrimps,” “crabs,” and “dolphins,” while the last category represents larger market holders, known as “sharks” and “whales.”
Below is a chart shared by Santiment illustrating the trends in Bitcoin Supply Distribution across the aforementioned cohorts over recent months:
The chart clearly shows that both the 0 to 0.1 coins and 0.1 to 100 coins groups have experienced a rise in Supply Distribution, indicating an increase in the number of addresses within these sizes. Over the last month, the first cohort saw an increase of 37,390 addresses, while the latter group added 12,754.
However, it is important to note that this growth did not proceed in a linear manner, particularly for the 0 to 0.1 coins segment. The data suggests that following an initial price crash, there was a spike in address counts for these cohorts; yet, as Bitcoin’s volatility persisted, many of these small investors retreated from the marketplace.
Despite these fluctuations, the overarching trend of net adoption during this turbulent phase could be seen as a positive development for Bitcoin’s future. On a more concerning note, the metrics for larger holders (sharks and whales) reveal a decline.
In comparison to the previous month, the number of wallets containing 100+ BTC has decreased by 6. While this decline may appear minor, the influence of large holders increases proportionally to their coin volume, making these investors vital players in the market landscape.
Consequently, the reduction in the count of shark and whale addresses may hold greater significance than the recent uptick in adoption from smaller entities. Santiment advises, “Look for the 100+ BTC wallets to begin growing in number as a sign that a crypto-wide breakout is back on the horizon.”
BTC Price
Following a recent downturn, Bitcoin is gradually recovering, with its price now exceeding $90,000.
