A recent study by Chainalysis revealed that a third of all existing Bitcoin (BTC) belong to only 1600 crypto wallets, with each possessing at least 1,000 Bitcoin. Furthermore, about 100 wallets belonging to 1600 contain more than 10,000 Bitcoin.
A single wallet containing 1,000 BTC would already amount to $7 mln. That is if the wallet contains only 1,000 BTC, which, in most of the 1,600 wallets, is simply not the case.
This presents a risk, as Philip Gladwell, Chainalysis chief economist explained that “this concentration of wealth means that Bitcoin is at risk of volatility as the moves of a small number of people will have a large price effect.”
But there seems to be no apparent cause for alarm, since the study had noticed that a certain number of these wallet owners have not moved their crypto for years, prompting others to imply that some of these are owned by people who have lost access to their crypto wallet, or their Bitcoin. Others also suggest that the creator of Bitcoin himself — or herself, or themselves — aliased Satoshi Nakamoto, experienced the same misfortune, with a million Bitcoins possibly lost indefinitely.
Additionally, as Chainalysis observed, the number of Bitcoin being hoarded by these possessors have decreased over the years, compared to the ones being held by short-term possessors. This could mean that there’s a shift in power dynamic brewing, although nothing is certain as of the moment.