As follows from latest report companies analyzing the cryptocurrency and blockchaib market – Chainalysis – less than one-fifth of bitcoins extracted is actively traded, while the remainder is stored by long-term investors.
Only 19% of bitcoins are actively traded
Data published by the company indicate that only 19% of all bitcoins mined so far change their owners. 20% of bitcoins were lost, reaching dead and forgotten wallets (not to mention the BTC wallet belonging to the anonymous Bitcoin creator – Satoshi Nakamoto).
About 60% of bitcoins in circulation are stored long-term by various market participants.
“Moreover, these entities – be they people or businesses – have never sold more than 25% of the bitcoins they have ever received, and have often clung to these BTC for many years.”
– wrote in the report.
More liquid data from Chainalysis
Of the 3.5 million Bitcoins that are currently being actively traded, 96% of the volume comes from so-called retail investors. Typically, a “retail” investor refers to any market participant not associated with a financial institution, however, in the Chainalysis report, this is defined as any entity that makes transactions worth $ 10,000 or less over a given period of time. As a result, the majority of transfers to cryptocurrency exchanges (over 625,000), every week since 2018, took place in amounts from USD 10 to USD 1000. However, 125,000 transfers were made in amounts from USD 1000 to USD 10,000.
Chinalysis has compared this data with the number of professional traders. This study covered institutional entities, but did not exclude whales who operate independently of the institution.
It showed that of the 340,000 active traders per week, 4% (around 14,200) are professional traders and they are responsible for 85% of “BTC values sent to exchanges in dollars.”
“For this reason, professional traders contribute the most to major market movements, such as those observed during the dramatic fall in Bitcoin prices in March, when the Covid-19 crisis escalated in North America.” However, there are few professional traders who have traded such amounts making only 39,000 transfers per week in 2020. “
– said the analytical company.