New research from Chainalysis indicates that most of the current supply of bitcoin is held by long-term investors.
According to the data presented by Chainalysis, only a small portion of the bitcoin that has been mined and the mineral recently traded while the rest is being held and stored.
According to the same report, about 20% or more were lost due to the forgotten wallets, not to mention the six or seven-digit amount of bitcoin belonging to the Bitcoin creator named "Satoshi Nakamoto".
As for the rest of the circulating supply, about 60% of Bitcoin is retained in the long term by market participants, in addition to that, people or companies have never offered more than 25% of their holdings for sale, and they often hold it for years.
As for 3.5 million Bitcoins, they are actively traded by retailers, who account for 96% of this amount.
For your information, the term "retailers" refers to those who are not associated with any financial institution, while according to other definitions such as the definition of Chainalysis, the term "retailers" refers to entities that move sums of less than $ 10,000.
According to the same report, more than 625,000 dollars have been pouring into digital currency trading platforms every week since 2018 in the form of divided payments between 10 and 1000 dollars.
While there are other transfers worth 125 thousand dollars that enter the trading platforms in the form of blocks ranging between 1000 and 10 thousand dollars.
Chainalysis describes this demographic and divides it into whales, financial institutions, and retailers.
Chainalysis report figures indicate that out of the 340,000 active Bitcoin traders per week, 4% of the traders were identified as professional entities, representing about 14,200 entities that account for 85% of all Bitcoin sent to the trading platforms.
Analytics firm Chainalysis says:
For this reason, professional traders are the most important contributors to big market moves, such as those seen during the big bitcoin price drop in March as the Coronavirus crisis in North America intensified.
However, professional traders are few in number, moving all that value at an average of 39,000 weekly conversions in 2020.
