Data analysis reveals that Bitcoin’s wealth distribution is becoming increasingly concentrated, with the largest holders taking unprecedented control of the asset’s total circulating supply. Over 20,000 distinct Bitcoin wallets currently hold assets valued at more than $10 million each. Collectively, these substantial wallets control approximately 9.43% of Bitcoin’s total circulating supply.
This group also commands over 21% of the network’s realized capitalization, a metric calculated based on the price at which each coin last moved. The accumulation of significant holdings in these wallets indicates a strategic build-up predominantly driven by large institutions and high-net-worth individuals, commonly referred to as ‘whales’.
This trend signifies a notable departure from previous bull markets, which saw heavier participation from retail investors. The heavy concentration within these large wallets directly challenges a core tenet of Bitcoin: decentralization. Critics argue it grants a small group disproportionate power to influence market behaviour and liquidity through large transactions.
Consequently, retail investors are facing reduced influence in a market increasingly shaped by large-scale trades and institutional participation. This evolving dynamic creates a clear tension between the growing institutional validation of Bitcoin and its founding principle of offering a widely distributed, decentralized digital currency. The community continues to debate ways to balance this institutional confidence against Bitcoin’s original narrative.