Glassnode Data Reveals Growing Bitcoin Address Reuse as 31.2% of Supply Sits Behind Visible Public Keys

A growing portion of Bitcoin's circulating supply is associated with publicly exposed cryptographic keys, according to on-chain data from Glassnode.

Bitcoin held in reused addresses has climbed to approximately 4.33 million BTC, representing around 21.5% of circulating supply. Crypto Briefing reported that this figure has recently increased by 14%, highlighting a growing concern surrounding Bitcoin address security.

Bitcoin allows users to generate a new address for every transaction. However, many individuals, businesses, and exchanges continue to reuse existing addresses, increasing the long-term visibility of their public keys.

According to analysis shared by Glassnode analyst Rafael, combining address reuse with older Bitcoin formats and structural exposure brings the total amount of BTC associated with visible public keys to approximately 6.26 million BTC, or 31.2% of total supply.

🔍 Where Is the Exposure Coming From?

Glassnode divides the exposure into two main categories:

1. Operational Exposure — 4.33 Million BTC

This category includes Bitcoin held in addresses that have been reused by individuals, businesses, and other holders, as well as exchange-related addresses.

2. Structural Exposure — 1.94 Million BTC

This exposure results from Bitcoin address and transaction formats that reveal public keys by design.

The structural category includes:

- Legacy P2PK outputs: Approximately 1.71 million BTC.

- Satoshi Nakamoto-linked holdings: Roughly 1.10 million BTC within the legacy P2PK category.

- Taproot-related exposure: Approximately 222,000 BTC.

Legacy Pay-to-Public-Key (P2PK) is one of Bitcoin's oldest transaction formats. Unlike address types that reveal public keys only when coins are spent, P2PK exposes the public key directly in the blockchain output.

📊 Bitcoin's Exposure Has Increased Since 2021

The proportion of Bitcoin supply associated with visible public keys has risen significantly.

In early 2021, the figure stood at approximately 24.8%. It has now reached 31.2%, returning to levels not seen since around 2016.

This trend highlights how address management practices and Bitcoin's historical transaction structures continue to shape its security landscape.

🏦 Exchanges Hold a Significant Share

Glassnode's analysis indicates that exchanges hold approximately 1.79 million BTC associated with visible public keys.

Such concentration may increase the importance of robust cybersecurity, careful key management, and appropriate custody practices. It could also attract additional regulatory scrutiny and encourage some holders to reconsider their storage arrangements, including cold storage and more disciplined address usage.

⚠️ Can the Exposed Bitcoin Be Moved?

Moving large Bitcoin reserves to new addresses is not a simple, one-click operation. Large-scale migration requires careful planning, testing, transaction-fee budgeting, and procedures designed to avoid operational mistakes.

The approximately 1.10 million BTC associated with Satoshi Nakamoto cannot be moved unless someone with control of the relevant private keys chooses to authorize a transaction.

It is also important to understand that a publicly visible public key does not automatically mean the corresponding private key has been compromised. Public keys are designed to be public; the concern is the additional information and potential future cryptographic risks associated with particular exposure patterns.

The analysis was published on October 8, 2026, following discussions on October 7 about large-scale strategies for improving Bitcoin address security.

💡 The Bigger Picture

Bitcoin provides users with the ability to generate fresh addresses without a protocol-level address creation fee. Yet, despite this option, a growing share of the network's supply remains associated with visible public keys.

With address-reuse balances reaching 4.33 million BTC and overall exposure climbing to 6.26 million BTC, address management and long-term custody practices remain important topics for the Bitcoin ecosystem.

The key takeaway: Bitcoin's security depends not only on its protocol, but also on how users manage addresses, keys, and stored assets.

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