On-chain analytics firm Glassnode has broken down the Bitcoin cohorts accrued and those distributed over the past year.
Bitcoin Whales Distributed Coins Equivalent to 60% of Mined Supply in the Last 12 Months
According to data from glass knot, whales, miners and exchange releases have been the main sources of distribution over the past year. The relevant indicator here is the “annual absorption rate”, which measures the annual changes in the Bitcoin balance of different cohorts in the market and compares them to the number of coins issued during this period.
“Coins Issued” refers to the total BTC amount minors receive as block rewards for mining a block. These newly produced coins have to go somewhere, and that’s what measuring annual absorption rates tries to paint a picture of BTC supply flow.
The cohorts that Glassnode considered are shrimp (investors holding less than 1 BTC), crabs (between 1 to 10 BTC), whales (more than 1,000 BTC) and miners. Additionally, the company has also included data for the “currency outflows”, which measure the total number of coins withdrawn from the wallets of all centralized exchanges.
Now, first of all, below is a graph that shows which of these investor groups was absorbing a positive amount of the annual coin issuance:
The value of the metrics seem to have been quite high in recent weeks | Source: Glassnode on Twitter
As shown in the chart above, Shrimp’s annual Bitcoin absorption rate is currently 107%, which means that this group of investors added 107% of the total number of coins issued on the network to their holdings at the time. course of the past year.
The indicator value was even higher for crabs at around 120%. From the chart, it is evident that the metric has seen a very rapid rise over the past few months, suggesting that a large accumulation took place at the lows after the FTX crash.
Since the amounts added by these cohorts are greater than what the network has issued in the last year, it seems reasonable to assume that some groups had to distribute or sell their coins to make up the difference. The chart below shows which cohorts have exhibited distribution behavior over the past year.
Looks like these metrics have been deeply negative recently | Source: Glassnode on Twitter
It appears that whales’ annual absorption rate is 60% underwater, suggesting that these huge holders have lost coins equal to 60% of their wallet’s issued supply over the past year. .
Exchanges also distributed a massive amount of Bitcoin as the metric value was negative 178% for exchange exits. These platforms have seen significant pullbacks during this period in part due to the collapse of FTX, which has made BTC holders more aware of the risks of holding their coins in centralized wallets. This led to a massive migration of BTC held on centralized entities.
Users transfer large amounts of BTC from exchanges to hold their holdings in private hardware wallets. Although not shown in the graph, Glassnode also mentions in the tweet that the miners have distributed 100% of the coins they mined (meaning 100% of the issuance), plus an additional 2% of their existing reserves.
As of this writing, Bitcoin is trading around $22,600, up 8% in the past week.
BTC continues to move sideways | Source: BTCUSD on TradingView
Featured image of Kanchanara from Unsplash.com, charts from TradingView.com, Glassnode.com