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Long-Term Investors Continue to hodl Despite $1T Bitcoin Market Cap

  • Posted On - 2021-03-22 07:12:18

Bitcoin’s liquid supply keeps shrinking, while only 36% of circulating BTC has moved on-chain in the past six months.

As per the reports shared by Glassnode  on March 21, the peak of the 2017 bull market saw 50% of Bitcoin’s supply circulating within the preceding six months.

The data shows that a couple of long-term investors are tempted to sell their Bitcoin at current price levels, suggesting whales are going to HODL as the current bull-trend is expected to go much further.

When the  price reaches new peaks it is a tendency of the market that older coins will be sold to catch the profit, but that trend appears to be decreasing now — concluding that investors would rather hold on to their assets for another term.

The current supply of BTC is 18.66 million, 88.85% of the maximum supply. It has also been reported that approximately fifth of all BTC has been lost or stolen, suggesting the actual circulating supply of Bitcoin could be relatively lower, bolstering the scarcity of the asset.

Glassnode data shared by popular crypto analyst Willy Woo noting significant on-chain activity while Bitcoin’s market cap has been above $1 trillion, with 7.3% of BTC’s supply kept changing hands while the asset has boasted a 13-figure capitalization.

The data, which illustrates UTXO Realized Price Distribution, is tracking Bitcoin’s undefined transaction outputs on different prices. Woo stated:

“This is pretty solid price validation; $1T is already strongly supported by investors. I'd say there's a fair chance we'll never see Bitcoin below $1T again.”

“URPD is a lens into price discovery by showing the price when coins last moved assuming they were bought by investors,” he added.

Woo noted that on-chain coin transfers does not always indicate active trading, with exchanges regularly shifting their digital assets internally.

Source: https://cointelegraph.com/news/long-term-investors-continue-to-hodl-despite-1t-bitcoin-market-cap