A new study has shown a shocking discovery that “Hodlers” control a large portion of the circulating Bitcoin supply. This is despite the increasing number of new subscribers joining the network.
The current development of the Bitcoin price is anything but inspiring, especially for short-term investors. The BTC/USD market fluctuated between USD 10,200 and USD 11,200, as bears and bulls seem to have reached a dead end.
Besides, trading volumes have gradually decreased during this consolidation phase. The action strongly suggests that crypto users are currently on the brink of extinction. A clearer direction or perhaps a hint from the market will probably encourage traders to take a stand. But until then, they seem to be watching everything from the sidelines.
Data from a recently completed study show a new trend that is promising for the BTC macro outlook. The overall supply of Bitcoins is dominated by long-term investors who are in no hurry to take action. This is the view of the analysis platform Glassnode, which investigates and generates on-chain metrics for digital asset enthusiasts.
The blockchain data and messaging service provider published a tweet highlighting that with a BTC volume of 63.3%, there have been no transmissions for over a year. Glassnode added that 31.4% of the total BTC volume had not changed for more than three years.
“Percentage of Bitcoin offer not 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 is due to a minority of active traders, while the base supply remains inactive.
Looking at these results from a different perspective, the Bitcoin trend seems potentially optimistic. As most Bitcoin investors are taking the long-term path, it is unlikely that they will enter a soon-to-be-observed upward trend.
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