In its recent weekly edition, cryptocurrency market research newsletter – Diar – presented some interesting stats about BTC holdings. The Diar report shows that how a majority of the Bitcoins in circulation are held in fewer wallets. This means that long-term investors who bought Bitcoins during its very early days are still sitting tight on their positions, undeterred by the bearish market of 2018.
The report goes to state that 55% of the circulating Bitcoins are held in wallets, each having value worth over $1.3 million at the current BTC rate. It further added that “over 87% of Bitcoins are stored in wallets that are above 10 Bitcoins ($60K+) – the total value just shy of $100Bn of the total market capitalization. These coins sit in only 0.7% of all Bitcoin addresses.”
For wallets holding over 100 BTC coins i.e. worth $630K+ currently, this number drops to 0.1% of all Bitcoin addresses but represents 62% of all the outstanding Bitcoins. However, Diar clarifies that top ownership of Bitcoin wallets doesn’t necessarily mean that it is in the hand of individuals.
It could also possibly mean that the largest wallets are held by cryptocurrency exchanges holding the coins on behalf of the clients. In actual, 3.8% of the total Bitcoin supply worth $4.2 billion are stashed in the top 5 wallets controlled majorly by exchanges.
Another interesting aspect of the Diar’s report is 42% of BTC tokens held in wallets holding above 200 coins have no outgoing transaction. This could either mean that investors have possibly lost access to their wallets or they believe in the future long-term potential of Bitcoin so strongly that they not much worried about the current price movements.
An earlier report by cryptocurrency and blockchain analysis company – Chainalysis – states that nearly 30% of the total Bitcoin is either unmined or lost. Diar said that it too finds its observations falling on the similar lines.
Also, in June 2018, Chianlysis presented a report wherein it mentioned that a whopping $30 Billions worth of Bitcoin tokens were sold in the period between December 2017 and April 2018. It also stated that 1/3 rd of the total BTC supply is concentrated in the hands of 1600 individuals.
In case of opening a new pandora’s box, CoinSpeaker reported yesterday that an old cryptocurrency wallet containing 111,114 bitcoin worth around $900 million, was recently active again. A Reddit post suspects that this wallet could possibly belong to the SilkRoad, an anonymous platform for trading illegal items like weapons and drugs.
“It seems that the owner of a huge SilkRoad related wallet is moving funds actively since 3 days, dividing it in chunks of 100 coins by subwallets. The original wallet owned 111,114.62 BTC / BCH , which is currently valuated ~ $844M (without taking in account other #Bitcoin forks). Last movements on these subwallets are 4 years and 5 months old (March 9th, 2014). The chunks have been divided over time to 60,000 coins then to 30,000 / 20,000 / 10,000 / 5,000 / 500 and now 100 coins,” u/sick_silk wrote.