Around 40% of all the Bitcoin that exists has stayed still for over three years, according to a report from Bitfinex this week.
People who hold onto Bitcoin for a long time are still getting more and keeping it for even longer. This shows that they’re feeling good about it, says the report.
The Bitfinex report said that 40% of all Bitcoin hasn’t been moved for more than three years. This is the highest it’s ever been. By looking at something called the “Coin Days Destroyed” measure, the report found that these old digital coins have mostly stayed where they are.
Bitfinex people said that this shows that many people are hopeful and think that Bitcoin will do well in the future, even if its price has been below $26,000 in August.
An Alternate Perspective:
Yet, when examining the narrower scope of a one-year inactive supply metric, a more cautious sentiment emerges. The report noted, “Our analysis indicated that movements on this timeframe preceded the drop in price.”
This refers to the recent Bitcoin flash crash on August 17, resulting in over $1 billion in liquidations and pushing BTC’s value down to the $25,000 range.
The analysts from Bitfinex further explained that these newer long-term holders, who acquired their Bitcoin during the market downturn, are feeling uneasy but not in a state of extreme worry.
As of 7:00 a.m. ET, the largest cryptocurrency by market capitalization is being traded for $25,943, based on CoinGecko’s data. Recent cautious statements from the Federal Reserve, increasing bond yields, and uncertainties in China are fostering a tendency towards risk aversion in the market.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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