One thing you notice when you look at the Bitcoin market is that while institutional investors’ buying is accelerating, holdings of 1 BTC or more are becoming concentrated among truly limited numbers of people. Looking at the latest data, the BTC currently in circulation is about 20 million, and over 92% of it is concentrated in addresses holding 1 BTC or more. With the price now up to $77.79K, the entry barrier is getting higher and higher.

An interesting comparison is that the number of addresses holding 1 BTC or more is about 5.6 million. That’s about the size of Ottawa or Abu Dhabi with a population of 1 million. In other words, it looks like there’s a fairly large “population” of Bitcoin holders, but in reality the amount of capital is concentrated in an extremely limited group. From a DYOR perspective, what also matters is that each individual has multiple wallets and hundreds of addresses, so the actual number of owners is even smaller.

Another point to pay attention to is that many large addresses are managed by operators such as exchanges. The active wallets that individuals truly own are only a small fraction. With the supply fixed, how far this centralization trend will go is likely to be the key question moving forward.