25% of Bitcoin supply controlled by long term investors; research 23373
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Priyanka Babu
Sep 18, 2018 at 11:03 PM

A research by Diar revealed that the king of cryptocurrencies hasn't lost its charm as a long-term investment option despite facing a harsh bear market during 2018. According to a Diar research, 25% of the total Bitcoin supply is controlled by the long-term investors. The research found that more than 55% of Bitcoins are in wallets that have more than 200 coins which could easily be worth more than a million dollars when the Bitcoin prices are over the $5000 handle.

"Over 87% of Bitcoins are stored in wallets that are above 10 Bitcoins ($60K+) – the total value just shy of $100Bn of the total market capitalization. These coins sit in only 0.7% of all Bitcoin addresses. Accounting for wallets with over 100 coins ($640K+), this number drops to under 0.1% of all addresses, but represent 62% of all outstanding Bitcoins," said the research.

The largest Bitcoin wallets are in the possession of major cryptocurrency exchanges, the research added. The research has identified that 3.8% of the total bitcoin supply is concentrated in the top five wallets that are controlled by these exchanges. The coins in these five wallets are estimated at approximately $4.2 billion.

Hodling Detected

The most significant finding made by the research is the number of dormant bitcoins that are present in these wallets. According to the finding, 42% of the bitcoins on these wallets has been sitting idle without any record of outgoing transactions. Notably, these wallets don't have a transaction history even during the Bitcoin hike of December 2017. Also, 27% of these wallets have added more coins since the price peak indicating hodling of Bitcoins.

25% of Bitcoin supply controlled by long term investors; research-BCFocus

Another research published in June this year found that five million Bitcoins were concentrated in the hands of 1,000 largest long-term investors and the 600 largest new speculators. This represents one by third of the total supply of the coin. The figures presented by these studies indicate that long-term investors still eye bitcoin as the no.1 long-term investment option.

See also: Bitmain CEO slams Craig Wright over proposed Bitcoin Cash hard fork; tells him to “f*** off”

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