 ▲ Bitcoin Whale © Coinreaders |
Bitcoin’s supply structure is quietly being reshaped. As the concentration among large holders rapidly declines, analysts say the market has entered a “redistribution phase” in which participation is becoming more decentralized.
According to cryptocurrency-focused outlet Bitcoinist on February 22 (local time), on-chain analytics firm Alphractal stated on X that Bitcoin’s Network Distribution Factor (NDF) is falling sharply. The NDF measures the proportion of the total circulating supply held by large wallets owning at least 0.01% of the supply. A decline in this figure indicates that supply concentration among large holders is decreasing.
Alphractal interpreted the falling NDF not as a structural bearish signal, but as a stage of ownership dispersion. The firm explained that after strong bullish cycles in the past, accumulated holdings by large investors were gradually absorbed across the broader market, leading to a prolonged decline in NDF. This can be seen as Bitcoin evolving from an asset concentrated among a specific group into a more widely distributed global network.
In this regard, analyst Crypto Patel emphasized that Bitcoin’s ownership structure and fixed supply remain core competitive advantages. He claimed that approximately 63% of the current circulating supply is held by individual participants rather than Wall Street, governments, or large institutions. He also described Bitcoin’s capped total supply of 21 million BTC—unchangeable by central banks or political authorities—as a structural innovation.
The outlet explained that this distributed structure goes beyond a simple technical phenomenon and represents a process of strengthening economic decentralization. As reliance on large wallets decreases, the market dominance of specific entities weakens, potentially reducing structural risks. This is interpreted as a natural redistribution that occurs as the asset matures.
Ultimately, the decline in NDF carries a dual meaning: easing supply concentration and broadening participation. Separate from short-term price volatility, analysts say the market is entering another transitional phase as Bitcoin’s ownership structure becomes more widely distributed.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*