Bitcoin’s ownership profile is quietly shifting: on-chain data shows the Network Distribution Factor (NDF) is dropping sharply, pointing to a meaningful redistribution of supply away from the largest holders. Alphractal flagged the move on X, noting the NDF — a metric that tracks what share of Bitcoin’s circulating supply is controlled by holders owning at least 0.01% of the total — has been declining. When the NDF falls, it means large holders account for a smaller slice of the pie and more BTC is dispersing to smaller wallets and new market participants. Why this matters - Lower concentration among big holders reduces single-party dominance and structural risk tied to concentrated supply. - Historically, declines in extreme concentration often happen in early accumulation phases and during periods of market maturation, especially after major bull cycles when large accumulators are gradually absorbed into the broader market. - Rather than a sign of weakness, this redistribution can strengthen Bitcoin’s economic decentralization as ownership becomes broader and more global. Context and bigger picture Proponents point to Bitcoin’s fixed 21 million supply and its ownership distribution as core strengths. Crypto commentator Crypto Patel estimates roughly 63% of circulating BTC is held by everyday individuals rather than governments, Wall Street, or institutions — a statistic often cited to underline the narrative that Bitcoin’s scarcity and decentralized ownership make it resilient in an era of aggressive money printing and currency debasement. Bottom line The falling NDF suggests Bitcoin is transitioning from a more concentrated asset toward wider distribution — a development many view as part of the network’s maturation and a net positive for decentralization and long-term structural health. Read more AI-generated news on: undefined/news

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