Biweekly Market Update: Trump Continues to Bet Bold on ‘Digital Gold’SBR’s Bitcoin Impact and MissionInstitutional Power Plays Amid Retail Profit-Tak

SBR’s Bitcoin Impact and Mission

Back on Mar 6, 2025, US President Donald Trump signed an executive order establishing the United States' first strategic Bitcoin reserve (SBR), marking a pivotal shift in national financial strategy. This move positions Bitcoin alongside traditional reserves, such as gold and oil, signaling a significant endorsement of digital assets by the federal government.

Frequency of mentions of Trump’s strategic Bitcoin reserve across social media.

The SBR is designed to centralize and manage all Bitcoin assets held by the US government, particularly those acquired through legal forfeitures. These assets are to be maintained as reserve holdings and are not to be sold, ensuring their role as a long-term strategic asset.

This initiative aligns with President Trump's broader agenda to make the United States a global leader in cryptocurrency, something he has been particularly focused on even prior to being elected president in November, 2024. By integrating Bitcoin into the nation's reserve assets, the administration aims to harness the benefits of digital currencies while providing a hedge against economic uncertainties.

The establishment of the SBR has also influenced state-level policies. For instance, New Hampshire recently passed legislation allowing the state to invest up to 5% of its public funds in cryptocurrencies and precious metals, reflecting a growing trend of governmental adoption of digital assets.

Announcement of New Hampshire legislation to allow state funds to be invested in crypto and precious metals. Sources: NH Governor Kelly Ayotte, X

Institutional Power Plays Amid Retail Profit-Taking

In the private sector, institutional investors are increasingly accumulating Bitcoin. Firms like Strategy (formerly MicroStrategy) have significantly expanded their Bitcoin holdings, with the company acquiring an additional 13,390 BTC for $1.34 billion, bringing its holdings to 568,840 BTC. Similarly, Metaplanet Inc. invested $126 million in order to purchase 1,241 BTC, thereby surpassing the national holdings of some countries.

Announcement of Metaplanet’s accumulation of 1,241 BTC on May 11, 2025. Sources: Simon Gerovich, X

Retail investors, on the other hand, have shown a tendency to take profits during market rallies, leading to a redistribution of Bitcoin holdings toward institutional entities. This shift underscores the growing influence of large-scale investors within the cryptocurrency market.

Comparison of <0.01 BTC & 10–10K BTC wallet holdings.

Shrinking Pie: Bitcoin’s Supply Tightens for the Average Trader

Many observers have been making the argument that Bitcoin is continuing to be funneled toward wealthy institutional investors, as well as top individuals and traders willing to hoard tens (or even hundreds) of millions of dollars worth of crypto in the midst of an increasingly oligarchical world society. As cryptocurrency market caps continue to rise, retail traders theoretically cannot resist the urge to eventually take partial or entire profits on their portfolios in order to enhance their lives or pay life expenses. The ultra-wealthy, on the other hand, can continue to hoard and accumulate more coins over the long term.

The amounts to just over 19.86M coins. When we look at how much of Bitcoin’s entire supply is held by wallets with at least 100 BTC (wallets currently worth $10.04M or more at the time of this writing on May 13, 2025), we can see that they hold 60.84% of that supply. If we expand the limitation to 10 or more BTC held in wallets, these individuals and entities own 82.51% of the supply. So, if we just simplify Bitcoin’s price to $100K, we can approximate that only around 17.5% of Bitcoin is held by wallets holding less than $1 million in BTC.

Percentage of Bitcoin’s supply held by wallets with at least 10 BTC and 100 BTC.

We can also look at how much of Bitcoin’s supply has already been mined, and how much is left. As mentioned above, as of May 13, 2025 about 19.86 million BTC have been mined, and are currently in circulation. Since the total supply of Bitcoin is capped at 21 million coins, that means around 1.14 million bitcoins still need to be mined. This means that 94.57% of bitcoins have been mined, and 5.43% remain to be mined over the next 15 years. The last Bitcoin won’t be mined until sometime around the year 2140.

Market Redistribution in Action

The 10–100 BTC tier can be broadly classified as mainly comprised of small institutional investors. The vast majority of wallets holding over 100 BTC are mostly held by institutionals and liquidity providers (with occasional exceptions of very large retail wallets, of course). The table below reveals that the 10–10,000 BTC wallet tiers hold the majority of Bitcoin (just over two thirds of all existing BTC).

Table of Bitcoin wallet sizes, along with their associated collective coins held and percentage of supply. Source: Santiment

But if the large wallets holding at least 10 BTC begin to target the smaller ones further and accumulate more, there are currently 3,465,879 BTC held by wallets containing fewer than 10 BTC. This accounts for about $358.03 billion worth of circulating Bitcoin, based on current price levels. Whether retail traders, miners and various investors in these smaller tiers actually want to sell will likely depend upon their overall optimism toward crypto markets. Historically, major price retraces tend to instigate retail panic-selling, followed by larger wallets absorbing more of the loose coins that retail is no longer comfortable holding for the long run.

For these smaller wallets, as well. The cost of electricity, equipment and maintenance is high — especially after each , when miners earn fewer BTC per block. To stay in business, many miners have to sell more of their Bitcoin to pay bills. Many miners (best classified as retail investors themselves) have fully embraced eager institutional investors, and often take profit shortly after their successful mining sessions are complete.

During a three-day span from Dec 4–6, 2024, known mining addresses dumped 13.4% of their entire holdings (281,660 BTC), which coincided with the temporary market top before an all-time high market value was reached on Jan 19, 2025. The majority of these dumped coins were scooped up by Bitcoin millionaires.

Total supply of Bitcoin held by known mining wallets over the past 10 years. Source: Santiment

Bitcoin also becomes more difficult to mine over time because the reward that miners earn is cut in half about every four years. This is called a “halving,” the latest of which took place in April 2024, reducing the mining reward to 3.125 BTC per block. It’s also worth noting that not all of the mined bitcoins are actually usable. Many early coins were lost over time, perhaps due to people misplacing their private keys or losing their devices.

Experts believe that between 3 million and 4 million bitcoins could be gone for good, which means the actual number available is lower than the total mined. In simpler terms, most of Bitcoin’s supply is already out there, a small portion is still being added slowly and even fewer coins are actually accessible to use or trade. With Bitcoin becoming more expensive and increasingly unattainable for the average trader, we’re likely to see the familiar pattern of the rich becoming richer continue throughout crypto.

The Trump Crypto Empire Expands

Speaking of the rich and powerful, the Trump family's involvement in the cryptocurrency space extends beyond policy. Eric Trump co-founded American Bitcoin, a mining company that recently announced plans to go public through a merger with Gryphon Digital Mining. The merged entity aims to become a leading platform for Bitcoin accumulation, and is expected to be listed on the Nasdaq Composite under the ticker "ABTC."

Announcement of Eric Trump’s merger with Gryphon Digital Mining. Sources: Bitcoin News (citing Reuters), X

This move complements the administration's efforts to foster a crypto-friendly environment, encouraging both public and private entities to embrace digital assets. The integration of Bitcoin into national reserves and corporate treasuries signifies a broader acceptance and legitimization of cryptocurrencies in the financial ecosystem.

As of May 13, 2025, Bitcoin’s price has fluctuated between $102K and $105K, ever since its mammoth rise at the tail end of the prior week. Despite short-term fluctuations, its long-term outlook remains optimistic, with continued institutional interest and supportive governmental policies.

Market value of Bitcoin, May 5, 2025 through May 13, 2025. Source: Santiment

The establishment of the planned strategic Bitcoin reserve would represent a significant milestone in the integration of digital assets into national financial strategies. Coupled with increasing institutional adoption and supportive policies, the United States is positioning itself at the forefront of the cryptocurrency revolution. While miners and everyday traders are offloading their Bitcoin to cover costs or take profit, large wallets continue to quietly grow stronger.

These include those held by powerful institutions, ultra-wealthy individuals — and now, even the US government itself via the planned reserve. With more than 80% of Bitcoin's supply now sitting in wallets holding $1 million or more BTC, it’s clear that long-term holders with deep pockets are taking control.

As smaller investors continue to sell during rallies, these giants are scooping up the supply, tightening their grip on the market. This shouldn’t necessarily detract you from owning Bitcoin or other cryptocurrencies yourself. However, it’s a friendly reminder that you’re increasingly likely to be a small fish in a big pond — even as your portfolio continues to grow.

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.