23 February, 2024

Bitcoin and Major Stablecoins See Decrease in Large Holder Dominance

1 month ago

22 Jan, 2024

  • In recent months, wallets holding between $100k and $10M in USDC have reduced their share by 3.05%.
  • Since June 20, Bitcoin holdings in the $100k-$10M USDT wallet category reached a record low of 42.99 million BTC.
  • Bitcoin wallets containing 10 to 10k BTC have now held the smallest portion of the total supply since September 2018.

Bitcoin’s landscape is witnessing a notable shift as the weekend dedicated to cryptocurrency trading commences. Analysis of wallet tiers reveals a subtle decline in the percentage of Bitcoin and top stablecoins held by large investors, known as sharks and whales. These trends suggest a potential change in investment strategies among significant holders.

Santiment, a platform with on-chain and social metrics for cryptocurrencies, shared an X post providing insights on the shifting dynamics in Bitcoin and stablecoin holdings among different investor tiers. 

Specifically, wallets containing 10 to 10,000 BTC currently hold 66.27% of the total Bitcoin supply, representing the smallest percentage since September 26, 2018. This shift indicates a diversification or distribution of assets among these investors. In the stablecoin arena, those holding between 100K to 10M units of Tether (USDT) now control 33.98% of its total supply, while a similar cohort in USDCoin (USDC) holds 35.49%.

Further analysis over the past six months highlights an interesting trend: wallets with $100k to $10M in USDC have reduced their holdings by 3.05% of the available supply. A similar pattern is observed in Tether, where wallets within the same range have decreased their stake by 4.02%. This suggests a cautious or redistributive approach among large-scale stablecoin holders.

Moreover, the amount of Bitcoin held by wallets with $100K to $10M in Tether has descended to a mere 42.99 million BTC, the lowest since June 20. This decline could indicate a broader strategy adjustment or a response to market conditions.

Investors and analysts closely monitor these movements in the cryptocurrency market, as they often precede broader trends or shifts. As the crypto market still recovers from its recent peak, the actions of these significant holders could set the tone for the market’s short-term direction. The ongoing changes in their investment patterns are critical to watch for insights into the future of cryptocurrency market dynamics.

Bitcoin’s market activity has seen a modest uptick, with its value currently at approximately $41,115, marking a 0.98% increase within the last 24 hours. Recently, the market has witnessed a struggle between bullish and bearish forces, with the Bitcoin price retracting beneath the key $45,000 resistance level. As per the latest data from CoinMarketCap, Bitcoin’s market capitalization stands at around $805.97 billion, accompanied by a trading volume of $23 billion in the past day.