Percentage of Supply Held by Addresses with $10,000,000 USD or Less

Understanding the distribution of Bitcoin is crucial for gauging market dynamics and investment strategies. The percentage of supply held by addresses with $10,000,000 USD or less provides insight into the level of decentralization and market participation by smaller entities. This metric helps investors understand how much of the Bitcoin supply is controlled by smaller, potentially retail-focused investors compared to large, institution-sized holders.

Analyzing this distribution can reveal important information about market liquidity and stability. When a significant portion of Bitcoin is held by addresses under the $10 million threshold, it suggests a more distributed ownership among smaller investors. This can lead to a less volatile market, as it reduces the risk of large, concentrated sell-offs that can occur when Bitcoin is held by a few large entities.

There are several reasons why the distribution of Bitcoin across different sized holders is significant for investors.

1. Market Power Distribution: A more distributed supply implies that no single entity has excessive control over the Bitcoin network, promoting decentralization.
2. Retail Participation: High participation from smaller holders generally indicates increased adoption and interest from everyday users, enhancing Bitcoin's role as a widely-used currency.

The behavior of addresses holding Bitcoin worth $10 million or less can be an indicator of potential market trends. These addresses are often representative of individual investors and smaller institutional players who can drive the market through collective action.

A broader distribution across smaller holders often correlates with increased transactional activity, as these holders are more likely to use Bitcoin for purposes beyond mere investment, such as commerce and remittances. It suggests an ecosystem where Bitcoin functions not just as a store of value but as a medium of exchange. The metric thus serves as a proxy for the overall health and utility of the Bitcoin market.

To summarize, the percentage of supply held by addresses with $10,000,000 USD or less is an important indicator for Bitcoin investors because it reflects:

• The extent of market decentralization and the potential for stability.
• The involvement of retail and smaller institutional investors.
• The overall usage of Bitcoin beyond investment.