Individuals Hold 69% of Bitcoin Supply as Institutions Scramble

Bitwise: 69% of Bitcoin Supply Held by Individuals as Institutions Fall Behind

Bitwise Asset Management has revealed that individual holders control 69.4% of the total Bitcoin supply, with only 7.5% considered lost and 6.1% held by funds and exchange-traded products (ETPs). The remaining supply is distributed among Satoshi Nakamoto's wallet (4.6%), governments (2.8%), and businesses (3%).

Hunter Horsley, CEO of Bitwise, highlighted that institutions seeking to acquire Bitcoin will primarily need to purchase it from individuals willing to sell. He also pointed out that despite consistent buying from corporates and ETFs, Bitcoin's price has still faced downward pressure, with the bulk of its value remaining in the hands of individual holders.

Meanwhile, only 5.7% of Bitcoin remains to be mined, and OTC markets are running low on Bitcoin. A crypto analyst noted that just 140,000 BTC remains in the OTC market, with institutions sourcing Bitcoin from OTC markets rather than exchanges to avoid triggering price surges. However, this strategy may no longer be viable with OTC supply depleting.

MicroStrategy, now Strategy, has maintained a consistent Bitcoin acquisition plan, purchasing 7,633 BTC for approximately $742.4 million on February 10. The firm now holds 478,740 BTC, valued at $47.12 billion. BlackRock has also reportedly acquired $1 billion worth of BTC in January, buying 227 BTC on February 10.

As supply tightens, institutions may soon be forced to buy directly from exchanges, potentially driving Bitcoin's price significantly higher. This supply shock threat looms as Bitcoin adoption accelerates, with cryptocurrency reaching 300 million users faster than the internet and mobile phones.