Retail investors now hold a record 17% of the bitcoin supply

Retail investors are holding more bitcoin this year despite the downturn of several high-profile companies. Furthermore, long-term holders also hold the highest share of the BTC supply.

It is not all doom and gloom in the world of crypto. Bitcoin on-chain metrics are still positive despite the 75% drop in price.

According to on-chain analysis by Glassnode, the supply of BTC held by retail traders has reached a record 17%. The company defines retail investors as those who hold less than ten coins. Additionally, as per the charts, there has been a sharp increase in retail holdings in the last one month.

On December 20, Will Clemente, co-founder of Reflexivity Research, commented:

“Not perfect yet, but solid for a 12 year old property and definitely headed in the right direction.”

Bitcoin holders hold firm

Retail investors are usually the first to sell in times of market downturn or media FUD (Fear, Uncertainty and Doubt). This is sure to happen in 2022, as it happened in 2018 after the ICO (Initial Coin Offering) crackdown.

Furthermore, retail investors typically come late to the party, accumulating only after bull markets are fully established. Long-term and institutional investors have little to avoid accumulating at the bottom of the cycle, which it is now.

According to a recent report from Coinbase Institutional, long-term bitcoin holders currently own 85% of the circulating supply.

bitcoin btc bull market

Glassnode confirmed the findings, saying that the supply of ‘hodlers’ reached a record high of 13.9 million BTC this month. It is reported that long-term holdings of bitcoin equal approximately 72.3% of the circulating supply. However, it defines long-term holders as those holding assets for more than 180 days.

Nevertheless, both metrics suggest that there is still a lot of faith and belief in bitcoin despite the turmoil in the market this year.

Coinbase also suggested that “high-quality” assets will be prioritized over altcoins in 2023. Institutional investors will mainly favor BTC and ETH for the next few months till the liquidity crunch is over.

crypto market outlook

Crypto markets remained sideways with minor gains today. The total market capitalization is around $844 billion, not far from the lows of last month’s cycle.

Analysts generally believe that low volatility and sideways trading will continue well into 2023.

“We give a low probability that crypto performance will diverge from traditional risk assets in the first few months of 2023,” Coinbase researchers said.


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