Bitcoin approaches $100K as retail investors take the lead in the market.

Bitcoin is approaching the $100,000 mark, currently trading at $99,340.23, which is stirring significant interest in the market. What’s particularly interesting about this rally is the dominance of retail investors. According to The Block, retail investors currently hold 88.07% of all Bitcoin in circulation. This is contrary to recent claims suggesting that institutional investors are surpassing retail investors in Bitcoin ownership. In fact, the figures show that retail investors still control the vast majority of Bitcoin, while whales hold just 1.26% and institutional investors have a mere 10.68%.

One of the catalysts driving Bitcoin’s momentum is the debut of BlackRock’s Bitcoin ETF, which saw a remarkable $1.9 billion in notional value traded on its first day. This marks a significant step toward institutional involvement in the Bitcoin market, but it also lowers the entry barriers for retail investors. Despite this, experts like Jeff Park, Head of Alpha Strategies at Bitwise Invest, note that the ETF’s true potential in reshaping access to Bitcoin will take time to materialize.

When examining Bitcoin ownership distribution, companies like Coinbase are substantial holders, owning more than 2.25 million BTC. However, most of this is held for their clients. The Satoshi Nakamoto wallet, which contains over 96,000 BTC, remains untouched as it played a role in creating the Genesis block. Overall, funds and ETFs together account for around 1.09 million BTC, or approximately 5.2%, while governments such as the U.S. and China hold an estimated 2.5%.

Despite Bitcoin’s impressive price surge, the market remains highly volatile. On November 21, for example, the price of Bitcoin dipped to $95,756.24 with a trading volume of $98.40 billion. This volatility highlights the significant role retail investors play in Bitcoin’s price movements, especially during periods of market fluctuation, even as institutional investors become more active.

There have been arguments suggesting that Bitcoin is becoming more centralized, but the data does not support this claim. Financial products like ETFs may be attractive to institutional investors, but they also provide greater access for retail investors, which ensures that Bitcoin remains aligned with Satoshi Nakamoto’s vision of a decentralized and democratized financial system. As Bitcoin approaches the $100,000 milestone, it’s clear that retail investors continue to play a key role in the market, challenging the notion that Bitcoin is shifting toward greater centralization.

This price rally and the current distribution of ownership reinforce the idea that Bitcoin’s future remains in the hands of everyday investors, which continues to shape the narrative of the cryptocurrency market.