68% of Bitcoin’s Total Volume Remains Dormant for Over a Year

Bitcoin, the world’s largest cryptocurrency, witnessed a modest 2% gain this week, signaling a potential turnaround in its recent performance. Although it continues to struggle below key levels, a notable trend has emerged among investors who increasingly view Bitcoin as a buy-and-hold asset.

According to the latest report from Bitfinex, a renowned cryptocurrency exchange, an astounding 13.27 million BTC, equivalent to 68.45% of the total supply of 19.4 million BTC, has remained untouched for over a year. This substantial volume of stagnant Bitcoin indicates a growing inclination among investors to hold onto their assets for the long term.

In addition to the accumulation of dormant Bitcoin, another significant indicator supporting this trend is the number of addresses belonging to “Wholecoiners.” This week, the count surpassed one million, representing entities or individuals who own at least one whole BTC. Wholecoiners make up a substantial portion of the Bitcoin community and further illustrate the shift toward long-term investment strategies.

BTC: supply last active 1yr + age bands (Glassnode)

Analysis of the data reveals that these investors have been steadily accumulating Bitcoin since mid-2021, and there has been minimal deviation from the upward trajectory of 1-BTC wallets ever since. Even during the market downturn in 2022, this group experienced a 20% increase in their holdings, solidifying their commitment to the cryptocurrency.

Bitfinex reaffirmed its earlier analysis, suggesting that Bitcoin might be in the early stages of a bull market. Despite the current market conditions, long-term holders of Bitcoin remain steadfast in their conviction. Furthermore, the ecosystem is expected to gain momentum due to increased transaction fees, which benefit miners.

The growing trend of buy-and-hold Bitcoin investors, coupled with the rise of Wholecoiners, paints a picture of resilience within the Bitcoin ecosystem. Despite the challenges faced by the market, these developments signify a shift in attitudes towards Bitcoin ownership and suggest a growing confidence in its long-term potential.

As Bitcoin continues to navigate its path forward, it will be intriguing to observe how these holding trends impact its overall stability and shape the future of the cryptocurrency market.

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