Many friends are asking, what’s the current concentration level of BTC holdings? Before we get into that, let’s take a look at some data: the average USD value of single on-chain BTC transactions dropped from $46,610 on December 14 to $24,897 on December 30, while during this period, BTC’s price remained roughly around 87k-88k. (Figure 1) What does this mean? Exactly, it indicates that during this time, the enthusiasm of large funds for participating in trades decreased. This has led to a situation where, although BTC’s price has been fluctuating within a range, the speed at which holdings from the price extremes are being injected (traded) into the middle range has slowed down. As a result, we’ve seen that BTC’s concentration level barely changed from the 25th to the 30th (currently at 14.4%). (Figure 2) This kind of situation has happened before, either when market sentiment hits rock bottom or when a specific event causes a temporary liquidity freeze. For example, right now, the main reason is that U.S. investors are in holiday mode. Once liquidity gradually recovers, two scenarios usually occur: 1. The concentration level continues to rise, then suddenly drops sharply after hitting a critical point; 2. The concentration level directly drops sharply. In either case, it will be accompanied by significant BTC price volatility, either a continuous surge or a continuous drop. ------------------------------------------------- Bitget VIP, lower fees, bigger perks