Bitcoin Supply Distribution

Definition ∞ Bitcoin Supply Distribution illustrates how the total circulating supply of Bitcoin is allocated among various addresses or entities. This metric analyzes the concentration of Bitcoin holdings across different wallet sizes, from small retail holdings to large institutional or whale addresses. It provides insight into the wealth disparity and ownership structure within the Bitcoin network. Analyzing this distribution helps identify trends in asset accumulation or dispersion among market participants.
Context ∞ Understanding Bitcoin Supply Distribution is essential for interpreting market dynamics and news regarding Bitcoin’s price stability and decentralization. A shift towards greater dispersion might indicate broader adoption and reduced concentration risk, while increasing concentration in large addresses could suggest heightened market manipulation potential. These patterns inform discussions on market health and long-term investment outlooks.