The composition of Bitcoin’s investor base is rapidly shifting, with smaller investors garnering greater dominance over the total circulating BTC supply.
This comes as the dominance of so-called crypto whales sees a sharp decline, signaling that the market is currently seeing inflows of smaller retail investors.
This shift comes as more investors start turning to the benchmark cryptocurrency due to its status as a “hard asset” – which many be sparking a trend of accumulation amongst investors.
One group, in particular, that might be behind this trend is young investors. A recent analysis from banking giant JPMorgan shows that this group is widely accepting Bitcoin as both a store of value and as an alternative to the U.S. Dollar.
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 percent.
They also note that the percentage of the supply owned by entities holding between 100 and 100,000 BTC has declined from roughly 63 percent to 49.9 percent currently.