Bitcoin address reuse leaves 4.33M BTC with exposed public keys

A growing slice of Bitcoin is sitting out in the open. According to on-chain analysis from Glassnode, the balance held in reused Bitcoin addresses has climbed to 4.33 million BTC, roughly 21.5% of circulating supply. That figure is up 14% recently. Bitcoin was designed to let people spin up a fresh address for every transaction, but a lot of holders keep going back to the same one. Analysis shared by Glassnode analyst Rafael (@n3ocortex) puts reuse at the center of a broader exposure problem. When you combine reuse with older and structural address types, the total amount of BTC behind visible public keys reaches 6.26 million BTC, or 31.2% of total supply. Where the exposure comes from When you spend from an address, the transaction reveals the public key behind it. Use that address again afterward, and the coins sitting there now have their public key permanently visible on the blockchain. Glassnode’s breakdown splits the exposure into two buckets. The larger bucket is operational, meaning behavior: people and businesses reusing addresses. That accounts for the 4.33 million BTC. The second bucket is structural. These coins are exposed not because of anyone’s habits, but because of...