2 - 3 minute read
Bitcoin (BTC) is currently trading in the shadow of the 2021 bull run, but new data suggests that the extended bear market has not significantly impacted the cryptocurrency’s supply. According to crypto analysis firm Glassnode, a record 48.25% of all Bitcoin has not been moved or transacted in over two years.
This unmoved Bitcoin can be interpreted in several ways. It could signal that the asset is building momentum towards becoming digital gold and, as a result, a store of value. This is a significant development for Bitcoin and the general cryptocurrency market, as it indicates a growing level of long-term confidence and stability among investors. It’s also worth noting that the bear market has presented an opportunity for long-term believers to buy in the dip.
The dormant Bitcoin also coincides with a period when the asset witnessed increased institutional adoption. Institutions have ventured into Bitcoin with a long-term goal, partly helping the asset increase its valuation. However, it’s possible that lost Bitcoin could also be contributing to the unmoved stockpile. In some cases, investors may no longer have access to their Bitcoin due to the owner passing away or losing access to private keys.
Bitcoin currently targets $21,000, trading at $20,949 by press time, with gains of about 0.5% in the last 24 hours. The asset has enjoyed a week-long rally to record over $70 billion in capital inflow.
The illiquid Bitcoin can hint at what to expect in terms of price movement. Notably, if the asset remains unmoved for a long, the market might experience some stability while selling or transacting points to increased chances of volatility. Overall, the record high of unmoved Bitcoin is moving contrary to the cryptocurrency’s price trajectory and could signify a turning point for Bitcoin as a store of value and digital gold.