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The creation of Bitcoin’s investor base is fast-shifting, with fewer investors acquiring more prominent dominance across the total current BTC supply.
This happens as the dominance of so-called crypto whales sees a sharp deterioration, signaling that the exchange is currently viewing inflows of more modest retail investors.
This transformation happens as more investors start shifting to the benchmark cryptocurrency due to its status as a “hard asset” – which several be sparking a course of increase amongst investors.
One group, in distinct, that might be following this trend, are budding investors. A current analysis from banking giant JPMorgan determines that this group is broadly accepting Bitcoin as both a store of value and as an alternative to the U.S. Dollar.
As Retail Investors Increase, ‘Whales’ takes over the market
Data shows that small investors – defined as those holding less than ten Bitcoin – are rapidly gaining control over the benchmark crypto’s circulating supply.
This trend was highlighted in a recent post from analytics firm Glassnode, in which they explain that over the past five years, the percentage of the BTC supply owned by entities with less than ten BTC has grown by nearly 9%.
They also note that the percentage of the supply owned by entities holding between 100 and 100,000 BTC has declined from roughly 63% to 49.9%.
“Control of Bitcoin’s supply has been steadily shifting towards smaller entities. The % of supply owned by entities holding ≤ 10 BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%.”
What’s behind that’s causing this trend?
One group potentially responsible for this trend is young investors, who appear to be accumulating Bitcoin rapidly.
NewsBTC reported yesterday that a recent analysis put forth by JPMorgan revealed that the younger generations have a high inclination to invest in Bitcoin.
“The two cohorts show divergence in their preference for ‘alternative’ currencies… The older cohorts prefer gold while the younger cohorts prefer bitcoin,” the bank’s analysts wrote.
Because Bitcoin is presently performing incredibly well against a setting of immense money printing and economic unrest, there’s a high chance that this trend will only pick up steam as demand for “hard assets” continues increasing.
It may also sustain the sliding superiority that large institutions wield over Bitcoin’s circulating supply, further decentralizing its distribution.