Forex in this article
• Bitcoin 2022 with poor performance
• On-chain data: The majority of bitcoin wallets have held investments for more than a year
• A quarter of BTC in circulation has not moved for five years or more
Since the beginning of the year, Bitcoin has lost more than 50 percent in value. While it was still around 47,000 US dollars at the start of the year, the oldest cryptocurrency has now shot in the region of 20,258 US dollars (as of September 13, 2022). This also affects investors’ investments: according to data from “TipRanks”, only 53 percent of Bitcoin owners are currently making a profit with their crypto investment, while 43 percent have a negative Bitcoin position. For the remaining four percent, it is worth about as much as it was at entry. However, despite this rather weak performance, the majority of Bitcoin investors are holding on to their investment for the long term. According to “Cointelegraph”, a survey conducted by the market analysis institute Appinio showed that 55 percent of Bitcoin investors would hold on to the investment despite the price drop. 40 percent would even think that Bitcoin is the best investment option in the next three months. When examining the data from the blockchain network, the so-called on-chain analysis, several service providers come to a similar conclusion.
So many bitcoins held in the long term like never before
Based on on-chain data, TipRanks found that 62 percent of investors hold their bitcoins for more than a year on average. For 32 percent of Bitcoin wallets, the weighted average retention period is one to twelve months. Only six percent of addresses invest in the short term, with an average holding period of less than a month.
This data is also largely confirmed by blockchain analytics firm Glassnode, which even sees a new all-time high in long-term Bitcoin volume. “The amount of bitcoin supply that has not been used for at least a year has hit a new record of 12.589 million bitcoin, representing 65.77 percent of the circulating supply,” Glassnode wrote on Twitter. The bear market even has a positive influence here, according to Glassnode.
This corresponds to 65.77% of the circulating supply.
Increasing dormant supply is a characteristic of #Bitcoin bear markets.
Live chart: https://t.co/Os3WDoYD4i pic.twitter.com/3WQ6ae7dvX
– glassnode (@glassnode) 5 September 2022
HODLers are on the move – the end of the bear market in sight?
As Glassnode wrote in a tweet back in July, many HODLers are simply no longer willing to sell at the current low Bitcoin price. Thus, investors holding more than 80 percent of all dollar-denominated assets invested in Bitcoin would have held it for at least three months. This is also behavior that has already been observed in previous bear markets and may now signal an imminent end to the current downtrend.
Over 80% of total USD-denominated assets invested in #Bitcoin has been contained for at least 3 months.
This means that the majority of the $BTC the coin supply is dormant and HODLers are increasingly unwilling to spend at lower prices.
Live chart: https://t.co/lRtBe69Phz pic.twitter.com/NIQzwkXQDv
– glassnode (@glassnode) 16 July 2022
As “Cointelegraph” writes, citing additional data from Glassnode, the amount of Bitcoin in circulation, which has not been moved for at least five years, was at a new all-time high of about 24 percent in mid-August. On the one hand, this may mean that some early investors, who still received several Bitcoins at a – seen today – ridiculous price, have lost the access data to their wallets, but on the other hand, that the truly long-term investors are also in a bear market, keep their bitcoin investment. In fact, it shouldn’t be too difficult for them. Because compared to 2017, when Bitcoin was around 4,000 US dollars in mid-August, your investment should still be significantly higher at the moment.
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