Decreasing Influence of Large Holders: Bitcoin and Major Stablecoins Witness Shift in Dynamics

Author : Elisabeth Louise | Published On : 22 Jan 2024

The cryptocurrency market experiences a subtle but notable evolution in the Bitcoin landscape as large investors, often referred to as sharks and whales, adjust their strategies. Santiment's analysis of wallet tiers reveals a decline in the percentage of Bitcoin and major stablecoins held by significant players, hinting at a potential shift in investment dynamics.

According to Santiment's data, wallets with 10,000 to 10,000 BTC currently hold the smallest percentage of the total Bitcoin supply since September 26, 2018, standing at 66.27%. This suggests a potential diversification or redistribution of assets among these investors. In the stablecoin domain, those with holdings between 100,000 to 10 million units of Tether (USDT) control 33.98% of its total supply, while a similar group in USD Coin (USDC) holds 35.49%.

An intriguing trend emerges over the past six months: wallets with $100,000 to $10 million in USDC have decreased their holdings by 3.05% of the available supply. A parallel pattern is witnessed in Tether, where wallets within the same range reduced their stake by 4.02%. This trend implies a cautious or redistributive approach among significant stablecoin holders, possibly responding to changing market dynamics.

Additionally, the quantity of Bitcoin held by wallets with $100,000 to $10 million in Tether has hit a record low since June 20, standing at 42.99 million BTC. This decline suggests a potential adjustment in strategy or a response to ongoing market conditions.

Investors and analysts closely watch these shifts, considering them as precursors to broader trends. As the market rebounds from recent peaks, the behavior of significant holders becomes instrumental in shaping the immediate direction of the crypto market. Observing these strategic adjustments provides valuable insights into the evolving dynamics of the cryptocurrency landscape.