In a major concern for many in the cryptocurrency community amid the deepening crypto winter, the total amount of dormant Bitcoin (BTC) has surpassed 15 million for at least six months.
According to an analysis by CryptoMonday.de, Bitcoin hodlers are becoming increasingly popular, and investors want to keep their BTC longer.
Hodlers are long-term holders of a cryptocurrency who buy and hold regardless of the price.
The stagnant BTC supply since 2010 has slowly increased over the years, with a few exceptions in 2018 and late 2021.
“This suggests that bitcoin holders are increasing their holdings rather than trading or moving them,” the report said.
“The stagnation is due to the steady decline in BTC prices, which has reduced people’s interest in trading at the moment. Also, it’s possible that the network isn’t being used as much as it used to be. This could be due to BTC’s increasing use of alternative cryptos like Ethereum,” said Jonathan Merry, CEO of CryptoMonday.
Bitcoin stagnation can be a problem for many people in the cryptocurrency community.
On the one hand, it signals a lack of liquidity in the market, which can lead to massive price swings even with a small change in demand.
It could also signal that institutional investors are pushing BTC to shed its volatility and turn it into an asset with minimal price movement, according to the report.
“It may be too early to draw any conclusions from this data. Still, it’s a clear indication that ‘hodlers’ are increasing their holdings and remain confident in the future of Bitcoin,” the report reads.
BTC price has been stagnant at around $17,000 a piece for a while.
It is possible that BTC has reached a saturation point, which most people interested in buying BTC have already done so.
“Furthermore, current economic conditions are not conducive to BTC growth. People are more interested in saving and investing their money than speculating on the future value of BTC,” the report said.
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(Only the headline and image of this report may have been edited by the staff at Business Standard; the rest of the content is auto-generated from a syndicated feed.)
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