Bitcoin Whales Now Dominate the Market

This group includes business intelligence firm Strategy, which recently added $1.34 billion in Bitcoin. Japanese hospitality company Metaplanet also increased its holdings by $126 million.

Wallets holding between 10 and 10,000 BTC now control over 82% of the total Bitcoin (BTC) supply in circulation, according to the latest report by Santiment.

What Happened: The report, titled "BTC Wallets: An Incrdible Shift In 2024," highlights the changing dynamics in BTC wallet distribution. It categorizes smaller wallets (those with less than 10 BTC) as retail traders and miners, while larger wallets (those with 10 to 100 BTC) belong to small institutions and those with 100 to 10,000 BTC are major financial players and liquidity providers.

The analysis shows that retail Bitcoin wallets currently make up only 17.5% of all BTC in circulation. These wallets are known to be sensitive to price movements and tend to sell their BTC during price rallies to meet personal financial needs.

In contrast, Bitcoin whales and institutional Bitcoin holders typically buy during downturns and hold for the long term. This shift leads to a steady redistribution of BTC from retail wallets to institutions.

See More: Trump's Bitcoin Reserve Policy: A U.S. policy shift began with former President Donald Trump, who established a Bitcoin reserve for the country. This positions BTC alongside gold and oil as a strategic asset.

As part of the same direction, the federal government stopped selling Bitcoin obtained through legal forfeitures, instead keeping it as part of national reserves.

New Hampshire Among Several U.S. States Open to Public Crypto Holdings: Several U.S. states are enacting legislation to allow public funds to buy cryptocurrencies and precious metals.

Earlier this year, the New Hampshire Senate passed a bill that would permit the state's treasury to invest in cryptocurrency and precious metals. The bill, which passed the House in December 2023, now heads to Governor Chris Sununu's desk for his signature.

The legislation, House Bill 198, is an initiative to permit the state to diversify its treasury holdings by investing in cryptocurrencies like Bitcoin and ether (ETH), along with traditional assets like gold and silver.

The bill encountered some resistance, particularly from Democratic lawmakers who expressed concerns about potential volatility and the need for further study. However, Republican lawmakers, who hold a majority in both chambers of the legislature, ultimately advanced the bill.

Trump's executive order in March 2024 directed federal agencies to coordinate on a national strategy for digital assets. It also tasked the Treasury Department with examining the creation of a U.S. stablecoin.

The order signaled a broader policy shift towards cryptocurrencies, aiming to harness their potential while mitigating risks. It came amid a surge in interest in Bitcoin and other digital assets.

The legislation in New Hampshire and Trump's executive order indicate a growing openness among U.S. policymakers to engage with cryptocurrencies and integrate them into the national financial system.