Though 40% of the bitcoins are with 1000 individuals the market hasn't gone centralized.

The market is speculative, and this has made 40% of the individual manipulate the market. However the market manipulation is reactive based on the small scale holders. Earlier easily people used to get panic whenever there is a large volume of bitcoin moved between wallets. Now this is common and people aren't reactive, so that 40% of the individuals weren't able to have control beyond certain limit.

This is a very interesting matter to discuss.

Well, here's the deal. As long as bitcoin exists, such whales are always going to exist. If an individual is decided to keep those bitcoins, no one can make them dump them. I'll try to compare these numbers you've written (that I'm not sure where you found them) with gold.

Gold is an asset that it's owned by governments. The very much majority of gold is being kept as reserve and the minority of it is used in our everyday lives. So, I'm speculating that if bitcoin is meant to have a similar fate to gold, then we'll most likely live highly hierarchical times where few individuals control a big part of the economy.

My two sats.

- I'm not sure that whales prefer to dump away all their coins at once and do it on the spot market which has to go through a few complicated administrative requests.
- Since altcoins have become a trend, many whales have expanded their wealth and made bitcoin a hedge. So, a large number of bitcoins are simply circulating between them.

Saying 40% based on the amount of btc stored in the top 1000 addresses I think it's not close to accuracy. There are some whales are also more convenient to store btc separately to reduce the level of risk. Even I doubt that the number of whales is much more than a thousand.

This is from early 2021:
https://www.businessinsider.com/bitcoin-whales-the-key-facts-figures-you-need-to-know-2021-1

If fact, the same was said in 2017:
https://www.bloomberg.com/news/articles/2017-12-08/the-bitcoin-whales-1-000-people-who-own-40-percent-of-the-market

I’m not sure where the original source from the data comes from, not what it is backed by (nor why it hasn’t changed after four years).

The bitcoin rich list point to 2.151 addresses holding 41,83% of BTCs:
https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html

Since we know that amongst the top richest addresses there are massive Exchange addresses, and that the percentage shown in those articles is nearly the same as the 41,83% I mentioned above, the articles (or their source) may have taken into their calculus the addresses of Exchanges, which would be incorrect.

Regardless, large whales surely have capacity to move things at their will, especially if they can find a fundamental that acts as a catalyst to boost their efforts. Certainly not ideal, and all you can do is buy some of them and hope that many do. The likeliness nevertheless is that weak hands will keep on caving-in into their strategy …

I don't think that there is anything we can do about this subject. Because as you know, all people have the freedom of buying whatever amount of Bitcoin they would like. And this will never change in the future also. As a result, whales will continue to exist and will be able to manipulate the market with huge buy-sell activities. I respect everyone's opinion about this of course.

You should consider that most of those 1000 individuals which some of those are exchange wallets and also consider that there are wallets which are totally lost or been forgotten thats why i dont really believe about
being centraliized and asking about on how about the whales? Just let them be because even if they could really dump the market but doesnt mean that they do have the full control of it.
The community is big and as long there would be some demand then it could actually recover or move according into it.

The more bitcoin gains value, the harder it is for those who hold them to dump it at once. Some of those elite few may sell their bitcoins, but others who really want to hold it for some other reasons and not just profit will hold on to it. Besides, those whales will never offload coins at once, and they know so well that if they did, they will lose a lot of money and their bags will be useless.

Whales will exist no matter the environment, and there’s really nothing we can do to sway them.

This is the same worry that what if satoshi wakes up and started moving those untouched bitcoins. Well, those are a million of bitcoins. And that's why you don't have to think about it. If they're going to dump, let them dump it. They deserve the profits that they'll take soon and what if they're also one of those early people that have bought bitcoin at a low price and believed on it and held it until now? They all have the rights to everything that they want to do with those bitcoins that they hold.

Exactly and you are right.
Due to the limited supply of bitcoin, there is the possibility that there is someone who can play the market and that is what we called whales and there is nothing we can do at that point someday soon when bitcoin has increased the individual holders and those whales will hardly to manipulate the price because it will become more expensive. I don't think bitcoin has a centralization it just sometimes there is greed for people who want to have a benefit from bitcoin.

I don't know what OP is expecting here. But no one can dictate those whales what to do with their holdings. After all, we all have our own freedom what to do with our funds.  And besides, bitcoin is decentralized not a centralized coin, so he has no worries about this aspect of bitcoin. Even if we say, large portion is owned by 1k individuals or entities, still, it is not their interest to control the market. Also, the reason why we have this market performance is the supply and demand in play, now, if they will control it (but not gonna happen as I don't think they will be communicating with each other), I don't think we will have natural market demand.