Percentage of Supply Held by Addresses with 10,000 - 100,000 BTC

Understanding the distribution of Bitcoin supply is crucial for analyzing market trends. One of the key indicators of this distribution is the percentage of supply held by addresses containing 10,000 to 100,000 BTC. These large addresses often represent institutional investors or early adopters who have significant influence over the market.

Observing the behavior of these addresses can provide insights into the confidence levels of major Bitcoin holders. If the percentage of Bitcoin held by these addresses increases, it may indicate that large players are accumulating Bitcoin, potentially signaling a bullish trend. Conversely, if the percentage decreases, it could mean they are reducing their holdings, which might imply a bearish sentiment.

The concentration of Bitcoin supply in large addresses can impact market volatility. A high concentration might lead to price stability, as it reduces the likelihood of sudden large-scale sell-offs. However, it can also make the market vulnerable to abrupt price changes if a few of these addresses decide to trade significant amounts. Hence, monitoring this metric provides investors with an essential tool to gauge market health and investor sentiment.