Retail Investors Still Control the Majority of Bitcoin
According to new data from Bitwise, retail investors continue to dominate Bitcoin’s ownership structure, controlling nearly 66% of all circulating BTC. The report suggests that while institutional interest has surged in recent years, Bitcoin remains primarily a retail-driven asset.
Bitwise analysts note that Bitcoin is gradually transitioning from early adopters to institutional hands, with funds, ETFs, corporations, and even governments actively accumulating. However, the shift is still in progress, leaving a substantial portion of the supply held by individual holders.
Institutions Accelerate Bitcoin Accumulation
Institutional investors, including ETF issuers and publicly traded companies, now control around 12.5% of the total Bitcoin supply. This figure has been rising steadily with the expansion of Bitcoin ETFs and increased corporate adoption.
Analysts highlight that this growth signals a structural change in Bitcoin’s market behavior. The asset is becoming more intertwined with traditional financial systems, paving the way for new forms of market stability — and, potentially, volatility driven by global capital flows.
The End of the Four-Year Bitcoin Cycle
Bitwise researchers argue that the long-standing “four-year cycle” theory tied to Bitcoin halvings is no longer valid. Historically, halvings have reduced the rate of new BTC issuance, sparking bull runs and subsequent corrections.
Now, however, macroeconomic factors and institutional demand are the primary drivers of price movement. Bitcoin has evolved into a macro asset, with approximately 80% of its market performance explained by broader global economic conditions such as interest rates, inflation, and liquidity trends.
Bitcoin’s New Identity as a Macro Asset
The transformation of Bitcoin into a macroeconomic asset has far-reaching implications. With traditional financial institutions deeply integrated into the crypto ecosystem, Bitcoin’s price now responds more strongly to Federal Reserve policy decisions, global liquidity shifts, and investor sentiment toward risk assets.
As retail holders maintain dominance and institutions continue to increase exposure, Bitcoin finds itself at a unique crossroads — balancing its decentralized origins with growing influence from global financial systems.
