The most ardent Bitcoin (BTC) investors, known as “diamond hands,” continue to amass the digital gold in anticipation of the next bull run, despite the fact that Bitcoin’s (BTC) price performance appears pitiful to traders and experts. Researchers warn that volatility increases might be on the horizon.
Almost 30% of Bitcoins (BTC) stay dormant for 5+ years
A new all-time high was been printed for the portion of the Bitcoin (BTC) supply that has been idle for at least five years. In the 60 months before to August 27, 2023, 29.508% of Bitcoins (BTC) had not been transferred between on-chain wallets. Through its Glassnode Alerts tracker, premier on-chain analytics team Glassnode made this information public.
Early around 2022, the metric began becoming parabolic. The quantity of “HODLed or lost” coins likewise set a noteworthy record. This category includes the sum of 7,838,524.065 Bitcoins (BTC). These Bitcoins (BTC) are either kept in the dedicated Bitcoiners’ on-chain wallets or permanently lost as a result of problems with private keys.
At the same time, according to a recent tweet from Glassnode, the balance of Bitcoin (BTC) exchanges fell to a five-year low of 2,256,045.019 BTC. As a result, ownership of Bitcoin (BTC) keeps shifting from “tourists” to “believers.”
As previously reported by U.Today, the largest cryptocurrency, Bitcoin (BTC), entered a “mid-cycle lull” phase characterised by erratic performance.
According to statistics from 2016 to 2020, this is typically a hint of the final waves of “pain” before the beginning of a fresh rally.
Bitcoin (BTC) is traded at the same price of $26,100 as it was twenty-four hours ago.
Analyst foresees “interesting part of Bitcoin cycle” coming
The “Hodler Growth Rate,” which measures the growth of Bitcoin (BTC) holders who have held their coins for at least two years, is also slowing down. between the medium term, it signalled the beginning of a rise between 2016 and 2020.
Charles Edwards, the creator of the digital asset hedge fund Capriole Investments, presented this insight. Every bad market, he observed, sees a rise in the number of holders in this category.
It began to increase in this cycle in the beginning of January 2022, immediately following the commencement of Bitcoin’s (BTC) bear phase. Therefore, based on the performance of Bitcoin (BTC) in the past, this indicator performs well.
