As Bitcoin adoption continues to grow, recent data indicates a worrying trend: the majority of Bitcoin is increasingly being concentrated in a limited number of large wallets. According to blockchain analytics firm Santiment, this shift may suggest that institutional investors are tightening their grip on the crypto market, leaving smaller retail participants with a shrinking share of the pie.

As of May 13, wallets holding at least 10 BTC — currently valued at approximately $1 million or more — control over 82% of the total mined Bitcoin supply. This includes high-value wallets from institutions, hedge funds, and large-scale investors. In contrast, wallets holding less than 10 BTC, which are typically associated with retail investors, only account for around 17.5% of the overall Bitcoin distribution.

Further breaking down the data, Santiment highlights that wallets containing 100 BTC or more — exceeding $10 million in value — now control over 60% of Bitcoin’s circulating supply. These wallets are largely owned by institutional players and major liquidity providers, although some exceptionally wealthy retail investors also fall into this category. Wallets with 10 to 100 BTC are mostly held by small institutional investors, contributing further to the increasing centralization of Bitcoin holdings.

Santiment analysts also emphasized the growing challenges faced by individual crypto miners. With higher equipment costs, lower mining rewards, and fierce competition, mining has become less accessible for solo participants. Many mining operations now choose to sell their rewards quickly to institutions, who eagerly absorb the fresh supply to strengthen their holdings.

Moreover, an estimated 3 to 4 million BTC may be lost forever due to forgotten passwords or inaccessible wallets. With only about 1.14 million Bitcoins left to be mined until the supply cap is reached in the year 2140, the remaining supply is becoming scarcer. Whether small holders will hold or sell in the coming years remains uncertain and will likely depend on market sentiment and global economic trends.

This rising concentration of Bitcoin ownership raises questions about decentralization, one of the founding principles of cryptocurrency. As institutions tighten their grip on the asset, retail investors may find it harder to influence price movements or benefit from Bitcoin’s long-term growth.