Today’s on-chain analysis provides a look at the behavior of small and large crypto market participants in the context of the ongoing dip.

It turns out – unlike after previous bull markets ended – that minnows are increasing their holdings despite Bitcoin’s price decline. Moreover, not all whales have decided to sell, and some are also increasing their supply.

The minnows are overtaking the whales

According to on-chain analyst Willy Woo, the history of Bitcoins distribution indicates a long-term trend of BTC moving from the hands of whales to small retail investors (minnows). This is a trend that has been in place almost since the beginning of the history of halving cycles, as it dates back to the end of 2011.

Its particular stabilization can be seen after the bull market of 2013-2014, when cryptocurrency exchanges and ETFs (exchange-traded funds) started to play an increasingly important role in the crypto market.

Woo points out that “coins are moving to the masses”. According to his on-chain analysis, the dominance of minnows is increasing. If one also considers the supply in the hands of exchanges and ETFs, whose holdings largely represent those of smaller hodlers, whales are losing their supremacy.

Well, according to the chart, whales (1000+ BTC) currently hold 26% of Bitcoin holdings. Exchanges and ETFs collectively hold 17.5%, which they mostly keep on behalf of their 150+ million customers. Meanwhile, minnows (0-10 BTC) collectively hold 13.6%.

So the combined amount of assets held individually by minnows and through exchanges and ETFs is 31.1%. This is more than the 26% in the hands of the biggest whales.

Minnows buy the dip

The reason Woo pays particular attention to the behavior of small investors is the historical correlation between the periodic rise in the number of small BTC holders and the increase in Bitcoin’s price. The analyst illustrates this in a chart of the weekly net flows to small holders of less than 1 BTC.