According to the latest research from cryptocurrency analytics firm Chainalysis, just 19% of all mined Bitcoin (approximately 3.5 million BTC) is actively circulating in secondary markets. The remaining 81% is held long-term or considered permanently lost, highlighting strong hodler conviction despite price volatility.
Key Market Insights
1. Breakdown of Bitcoin Supply
Chainalysis categorizes Bitcoin’s circulating supply into three segments:
| Category | % of Supply | Description |
|-----------------------|------------|------------|
| Actively Traded | 19% | BTC frequently moved on-chain (e.g., exchanges, merchants). |
| Long-Term Holders | 60% | Held for years, with sporadic transfers (e.g., cold wallets). |
| Permanently Lost | 20% | No activity for 5+ years (e.g., forgotten keys). |
This data suggests that market prices are driven by a slim fraction (3.5M BTC) of the total 18.5M mined supply.
👉 Explore Bitcoin market trends
2. Who’s Trading Bitcoin?
Chainalysis analyzed the 350K weekly Bitcoin transfers to exchanges since 2018:
Retail Investors (96% of transfers):
- Median transfer: $10–$1,000.
- Typically deposit <$10K worth of BTC per transaction.
Institutional/Whale Investors (4% of transfers):
- Contribute 85% of total weekly exchange inflow value.
- Dominant in liquidity provision (e.g., March 2020 crash, where 1.1M BTC flooded exchanges in 8 days).
FAQ: Bitcoin Ownership and Market Dynamics
Q1: Why does long-term holding matter?
A: Limited actively traded supply (19%) increases scarcity, potentially amplifying price swings when demand shifts.
Q2: How do "lost" Bitcoins affect the market?
A: Lost BTC (20%) further reduces sellable supply, acting as a deflationary force.
Q3: Are retail investors impacting prices?
A: While retail dominates transaction counts, institutional moves (e.g., large sell-offs) dictate major trends.
👉 Learn institutional trading strategies
Key Takeaways
- Hodlers control 60% of supply, reducing sell-side pressure.
- Price discovery hinges on 3.5M BTC—monitor exchange flows.
- Institutions drive liquidity, but retail adoption grows.
Note: Cryptocurrencies involve high risks. Invest only what you can afford to lose.
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