New Analysis Finds That Less Than 1% of BTC Addresses Control Nearly 87% of BTCs Supply

A deep analysis of Bitcoin (BTC) addresses conducted by Chinas state-run financial news publication, National Business Daily (NBD), reveals that about 0.7% of BTC addresses currently control 86.9% of the flagship cryptocurrencys circulating supply.


Moreover, analysts used data from to conclude that this tiny 0.7% of BTC addresses own roughly $62 billion worth of BTC. To put this in perspective, Bitcoins total market cap is just $70.5 billion.

The analysis also showed that out of the 22.65 million addresses that hold at least some Bitcoin in them, 97.2% of these addresses have less than 1 BTC and only 0.7% have over 10 BTC in them.

According to further analysis from 8BTC, while 0.7% of addresses control $62 billion worth of Bitcoin, the other 97.2% with less than 1 BTC control just 4.6% of the cryptocurrency — thats less than $4 billion.

Who Controls the 0.7% of BTC Addresses?

A minuscule number of BTC addresses could potentially induce monstrous effects on Bitcoins price as they own roughly 86.9% of the total circulating supply. Therefore, everybody wants to know who owns these addresses.

According to NBDs study, the addresses with the most BTC belong to cryptocurrency exchanges like Binance, Bitfinex, and other major crypto exchanges.

The study also noted that the various large addresses may belong to more than one person or entity. After all, it only makes sense for large crypto exchanges to have multiple large BTC addresses if theyre holding funds for thousands of users.

While NBDs analysis found that the major cryptocurrency exchanges control the largest BTC addresses, they dont really know who the other large BTC addresses belong to.

The large addresses not controlled by exchanges are referred to as being controlled by Bitcoin whales, which are individuals or entities with significant amounts of Bitcoin.

Bitcoin Whales are Worrisome to Investors

The NDB report added that unknown large BTC addresses are likely to be controlled by Bitcoin whales, and this is very worrisome to investors looking to enter the market as they can influence it in a big way.

For instance, according to CryptoCompare data, if a Bitcoin whale sold 2,027 BTC worth $7.8 million, Bitcoins price would plummet 10% on Coinbase, the largest cryptocurrency exchange in North America.

To a Bitcoin whale, this amount of BTC would represent only a fraction of their holdings.

This is what scares many investors away from Bitcoin, and there has been much speculation that the price of Bitcoin is manipulated by w ...

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Tags: Bitcoin, Analytics, Supply (economics), China