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HomeNewsPercentage of Bitcoin Supply Held by Retail Traders Reaches 17%, up From 12% In 2020
Percentage of Bitcoin Supply Held by Retail Traders Reaches 17%, up From 12% In 2020

Percentage of Bitcoin Supply Held by Retail Traders Reaches 17%, up From 12% In 2020

Last updated 5th Jan 2023
Disclosure
  • Crypto investing is increasingly becoming popular among experienced investors.
  • Retail traders are looking for alternative investments with the potential for higher returns than traditional stocks and bonds.

Bitcoin and other cryptocurrencies have been on the receiving end in recent months following the Terra Luna and FTX fallout. Despite this, Bitcoin has registered impressive gains over the past 9 years, outperforming traditional assets by a significant margin. According to BanklessTimes.com, the percentage of Bitcoin supply held by retail traders surged to 17 percent in 2022 – up from 12% in 2020.

BanklessTimes CEO, Jonathan Merry, commented on the data saying

We are seeing a new wave of retail traders that have jumped into the Bitcoin universe, and it appears that they are healthy buyers. These traders may continue to accumulate Bitcoin over the coming months, further driving up demand for the cryptocurrency.
BanklessTimes CEO, Jonathan Merry

Glassnode data also supports these figures, which shows that entities with less than 10 BTC have grown 13.9% of the supply. This number has grown since the inception of Bitcoin. The increase in retail traders indicates that new investors are entering the market and suggest that despite what some might say, decentralization is still a significant factor in owning Bitcoin.

With more and more retail traders entering the market, Bitcoin will likely continue strengthening its position in the global financial system. While there is still some debate about Bitcoin’s concentration of ownership, this new data is encouraging as it shows that decentralization advocates are still a significant part of the Bitcoin ecosystem.

Bitcoin and Cryptocurrency Market Outlook

2022 has been an eventful year for the cryptocurrency market, and with more retail traders entering the scene, it's likely that we will see higher levels of institutional adoption. Terra Luna and FTX fallout may have caused some turbulence, but with the high inflation rate, crypto assets will remain attractive to investors looking for a potentially profitable investment. The coming months are likely to be quite interesting as we see how Bitcoin’s price continues to rise and how regulatory bodies react. Despite the uncertainty, one thing is certain: the cryptocurrency market will continue to be an attractive option for investors.

From a long-term perspective, it looks like Bitcoin's rally is far from over, and with more retail traders entering the market, institutional adoption could follow soon. This could further strengthen Bitcoin’s position as a viable asset class and attract even more investors in the coming months.

Elizabeth Kerr

Elizabeth Kerr

Elizabeth is a financial content specialist from Manchester. Her specialities include cryptocurrency, data analysis and financial regulation.