In the network of the first cryptocurrency, just over 2% of addresses control 95% of the current supply of coins. According to researchers from Flipside Crypto, the degree of centralisation after the rally to new highs at the start of the year has merely increased, writes Bloomberg.
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“The point is that the sharp rise in price recently has been accompanied by an increase in the concentration of coins on accounts with large balances,” said Eric Stone, head of the data analytics department at Flipside Crypto.
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Source: Bloomberg.
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More detailed analysis conducted by the firm indicates that among large Bitcoin holders, 92.4% belong to whales, 7% to cryptocurrency exchanges, and the remainder to financial instruments with Bitcoin as the underlying asset. A year ago these shares stood at 92.3% and 7.7%, respectively.
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Such a market structure points to the potential for enormous influence by whales on a still relatively illiquid market. In the expert’s view, a single trade can often move the price of the coin significantly. This still leaves retail investors to face “wild” price swings.
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Earlier, Glassnode noted that the number of Bitcoin addresses with 1000 BTC or more has risen to a new all-time high for Bitcoin.
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