The vast majority of Bitcoins are being held by a minority of investors – and lots of them haven’t moved all year…
The vast majority of Bitcoin investors are hoarding their coins, according to research from Diar. And it turns out the majority of coins are being held by people with no shortage of them in their wallets, and they’re in no rush to move them in.
In fact, it all points to the fact that long term investors are continuing to HODL in the midst of tumultuous times in the cryptocurrency sector. With price bounces making headlines on a weekly basis, the latest report suggests that more than 55% of all Bitcoins are in wallets worth at least $1m of more. Furthermore, of the funds within those wallets, 42% have not been moved since the end of December 2017, when the price of Bitcoin was at its peak. Long term investors are digging in. Staggeringly, 25% of all Bitcoins are in wallets that haven’t made any kind of outgoing transaction in at least ten months.
In fact, digging into the numbers further, and over 87% of Bitcoins are now stored in wallets that have a value of at least $60,000. The bulk of Bitcoin supply is in relatively few hands, which makes the current price wobbles less of a problem than they may seem. If investors are in it for the long term, then they’re more than likely going to carry on waiting things out. Not least because the rest of the year promises to be just as bumpy, with more SEC rulings, and the prospect of Mt Gox compensation bringing more coins to the open market.
The full Diar report can be found here.