Bloomberg bases its report on data and analysis from crypto analytics startup Flipside Crypto, which sealed the backing of major crypto exchange Coinbase and veteran crypto venture capital firm Digital Currency Group (DCG) back in November.
According to Flipside, as of Oct. 2018, a high number of long-inactive Bitcoin holders — defined as those that haven’t transferred their Bitcoin for between six and thirty months — have begun to transfer their coins, resulting in wallets active over the past month now holding around 60 percent of the coin’s circulating supply.
“It’s definitely a big shift. There’s more potential than usual for price swings.”
Flipside CEO David Balter emphasized to Bloomberg that it is long-time holders in particular, many of whom remained idle during the volatile markets of the past couple of years, who are now back on the active radar. Stone added that the trend could continue, saying: “we have no reason to expect them to remain stagnant for another 2-plus years.”
As Bloomberg notes, tightly clustered ownership of the top cryptocurrency — with around 1,000 wallet address reported to own 85 percent of all Bitcoins — has engendered the industry moniker of Bitcoin whales, whose sizeable holdings potentially confer a consequential power to move markets.