11.4 M Bitcoin Held As Long Term Investment


According to Chainalysis, the vast majority of Bitcoin (BTC) is considered long-term investment, with 60% held by custodians.

Bitcoin distribution of the offer. Source: Chainalysis.

Digital gold

The company concluded that Bitcoin’s distribution of supply makes it similar to gold, with the support of the asset’s digital gold status. They point out, however, that it is 3.5 million BTC that is actively traded that supports the price:

“But this digital gold is supported by a stock market for those who prefer to buy and sell frequently. The 3.5 million Bitcoin used to trade supplies the market, and, in interaction with the level of demand, that determines the price. ”

Chainalysis defines long-term investors as those who have never sold more than 25% of their assets, noting that these users have often held their assets for many years.

340,000 weekly traders

Deepening the analysis of the trading segment of Bitcoin, food, Chainalysis finds that even if traders are responsible for 96% of transactions, professionals move most of the volume:

“Retail traders, which we classify as those who deposit less than $ 10,000 USD worth of Bitcoin on exchanges at one time, appear to be the vast majority, in accounting, of 96% of all transfers sent to exchanges on a basic weekly average. Professional traders, however, control the liquidity of the market, which accounts for 85% of the entire USD worth of Bitcoin value sent for trading. ”

Commercial and professional traders. Source: Chainalysis.

The company also concluded that the maximum number of weeks of traders in 2020 was 340,000.

60% detained with guardian licenses

About 60% of all Bitcoin feed is held by custodians or Service Providers Virtual Assets, or VASPs. This statistic includes many exchanges. Coinbase alone holds nearly 1 million Bitcoin.

Where Bitcoin is organized by custodian type

Where Bitcoin is organized by type of custodian. Source: Chainalysis.

The company assumes 3.7 million BTCs are lost, including approximately 1.1 million coins that were likely mined by Satoshi Nakamoto.

The role of guardians has increased over time, which can add fuel to the fire for those who think there is too much centralization in space crypto.


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