New on-chain data shows that 75% of Bitcoin (BTC) has been kept for over six months.
A new study of Bitcoin’s blockchain activity found that, for the past six months, about three-quarters of the cryptocurrency has been idle.
Glassnode, a blockchain analytics platform, found that many Bitcoin holders are holding onto their holdings for the long haul, which bodes well for the asset’s potential price appreciation.
In light of Bitcoin’s recent price decline—21% from its all-time high—this trend is especially significant.
A week ago, the percentage of Bitcoin that had been dormant for six months or more was just around 45 percent, indicating a significant rise in long-term holdings.
Many Bitcoin holders seem to be holding onto their confidence in the asset’s long-term potential, even though the price has fluctuated recently.
Since a significant chunk of Bitcoin has remained relatively unchanged for months, it’s safe to assume that many investors see it as a long-term investment with the hope that its value will eventually increase.
The supply of Bitcoin accessible for trade is further diminished by this “holding” activity.
The price of Bitcoin could rise if supply is reduced and demand is maintained at a high level.
Bitcoin has recovered from its monthly lows, a topic that experts have just begun to discuss. Bitcoin (BTC) is worth 59,036.50 USD as of this writing.