- Bitcoin’s IBIT spot ETF now controls roughly 3% of its total supply.
- A new all-time high looks less like speculation and more like simple economics.
In Bitcoin’s [BTC] ecosystem, a new form of centralization is taking shape.
Whether that’s a good or bad thing really depends on how you see it. Either way, it’s a shift that’s starting to have real impact — and the market definitely can’t ignore it.
Bitcoin’s centralization shift : Opportunity or risk?
Ironically, Bitcoin was built on the core principle of decentralization. In essence, no single entity calling the shots. But that ideal is starting to blur.
BlackRock’s IBIT spot ETF now holds over 631,000 BTC, worth about $65 billion. That’s nearly 3% of Bitcoin’s total supply sitting in one institutional wallet.
In short, a sizable chunk of the fixed 21 million BTC is now heavily concentrated.
However, according to AMBCrytpo, this isn’t just about adoption. Instead, it’s a structural shift in BTC’s liquidity profile.
With supply increasingly locked in cold, non-speculative hands, Bitcoin’s volatility engine is cooling. What’s emerging is a leaner, scarcer asset — one which is more like a digital gold, and less like a casino chip.
So, the idea of Bitcoin hitting six figures might just be the beginning, not the peak. In fact, it is redefining centralization not as a risk, but potentially as a bullish driver.
Lower volatility sets the stage for BTC’s next bull run
Major capital inflows into Bitcoin ETFs, especially BlackRock’s IBIT, have consistently acted as catalysts for bullish price action.
In November 2024, IBIT spearheaded record inflows of $5.6 billion, coinciding with a 45% BTC rally toward $99k.
Similarly, a $849 million single-day inflow in March 2024 into IBIT preceded BTC’s new all-time high above $73k.
February 2024 saw $1.10 billion+ weekly inflows across spot ETFs like IBIT and Fidelity’s FBTC, fueling sustained price appreciation.
Source: Bitbo
With each wave of inflows, BTC’s volatility cools, shifting rallies from hype-driven spikes to moves backed by solid bid support.
So, calling a peak at this stage — just because liquidity is getting more centralized — might be jumping the gun.
The bigger picture suggests Bitcoin is gearing up for the next leg higher, powered by real capital rather than speculative frenzy.