Despite the decentralized nature of bitcoin, it emerges that only a few addresses account for a significant share of the asset's total supply. As a result, the holding continues to carry an influence on the bitcoin price movement.
According to data compiled by cryptocurrency trading simulator Crypto Parrot, the bitcoin supply held by the richest 10% addresses as of June 14th, 2021, stands at 18,559,085. The figure represents a whopping 99.05% of all the current circulating 18,735,681 bitcoin supply as of June 15th, 2021.
Elsewhere, a few addresses' dominance of bitcoin distribution is further exhibited compared to the set maximum supply of the digital currency. The amount held by the ten richest addresses represents 88.37% of the 21 million maximum capped bitcoin supply.
Based on the anonymous nature of bitcoin, it is challenging to determine the exact holders of bitcoin. Similarly, the few bitcoin addresses with a significant amount of BTC cannot easily be determined.
However, based on historical trading activities, such addresses belong to high net worth individuals and entities. Notably, exchanges and institutions perfectly fit this category.
Investors keeping bitcoin in hot exchange wallets
With exchanges ranking in this category, the report highlights the implications of the scenario. According to the research report:
"This is an indicator that investors prefer to keep their bitcoin holdings in hot wallets instead of cold storage despite the apparent risks. Besides exchanges, other large bitcoin holders are likely to be funds, custodians, and other high net worth individuals."
Notably, the bitcoin whales still account for a massive influence on the asset's price movement.
