A new study has shown a shocking revelation that ‘hodlers’ control a huge chunk of Bitcoin’s circulating supply, even as the number of new participants joining the network increases
The current trend of Bitcoin’s price is far from inspiring, especially for short-term investors. The BTC/USD market has been swinging between $10,200 and $11,200 as bears and bulls seemingly reach an impasse.
In addition, trading volume has gradually decreased during this consolidation phase – an action that strongly suggests crypto users are currently on the sidelines. A clearer direction, or perhaps indication from the market, will likely encourage traders to take more positions, however until then, they appear to be watching from the sidelines.
Data obtained from a recently concluded study shows a new trend that is promising for BTC’s macro outlook. Bitcoin’s total supply is dominated by long-term investors who are not in as much hurry to make moves. This is according to Glassnode, an analytics platform that studies and generates on-chain metrics for digital asset enthusiasts.
The blockchain data & intelligence provider posted a tweet highlighting that a BTC volume equivalent to 63.3% has not witnessed any transfers in over a year. Glassnode went on to add that a volume equivalent to 31.4% of the total supply has not seen any movement in over three years.
“Percent of Bitcoin supply that hasn’t moved in… 1+ years: 63.3% (11.7 million BTC) 2+ years: 44.5% (8.2 million BTC) 3+ years: 31.4% (5.8 million BTC)”.
This implies that the recent volatility and shift has been a result of a minority group of active traders, while the base supply stays inactive.
Looking at these findings from a different perspective, the trend seems to be potentially bullish for Bitcoin. Since the majority of Bitcoin’s investor base is taking the long-term route, it is improbable they’ll move to sell into any upwards movement witnessed soon.
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