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Bitcoin Whales Decline Boosting Decentralization and Market Confidence

source-logo  coinspress.com 28 June 2023 08:46, UTC

The decline in the number of large Bitcoin wallets owned by whales is a positive development, as it enhances decentralization and mitigates the risk of market manipulation by these influential entities.

According to Glassnode, a renowned provider of on-chain analytics, there has been a continuous decrease in the number of Bitcoin whales. Glassnode defines a whale as a wallet holding 1,000 BTC or more.

The Number of Whales (≥1K BTC) on the #Bitcoin network has experienced a perpetual decline following the ATH of 2169 Whales recorded across the 2021 Bull market, to the current value of 1672, a -497 Whale decrease (23%). pic.twitter.com/fyvJU8O4OA

— glassnode (@glassnode) June 26, 2023

Before the bull market in 2021, there was a record high of 2,169 Bitcoin whales. However, the current count stands at 1,672, representing a 23% decline or a reduction of 497 whales. This decline started during the first half of 2021 and continued after the significant market downturn caused by the Terra/Luna ecosystem collapse in May 2022.

Notably, despite recent price gains, the number of Bitcoin whales is currently at its lowest level in over three years.

Analyzing the distribution, the Bitinfocharts Bitcoin “rich list” reveals that the majority of the wealthiest BTC wallets belong to exchanges. Binance ranks first on the list, holding 248,597 BTC valued at approximately $7.5 billion.

While there has been an increase in the number of addresses holding less than one BTC, the majority of Bitcoin is still concentrated in a small number of accounts.

Glassnode’s “week on chain” report aimed to determine the amount of active BTC available for sale. The report revealed that only 11.9% of the circulating supply (2.28 million BTC) is held in exchange balances.

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In terms of short-term holders, 13.6% or 2.65 million BTC is available, but the bulk of the circulating supply (14.4 million BTC, equivalent to around 74.5%) is being held or is not readily accessible.

As for Bitcoin’s price outlook, it is currently consolidating near strong resistance levels slightly above $30,000. This marks the second time BTC has reached this price zone this year and encountered resistance.

Bitcoin has experienced a 4% increase in the past week, with a trading value of $30,350.