With its drastic price swings over the last year, it may come as a surprise to learn that almost 60% of Bitcoins haven’t moved in the last 12 months.
According to findings by Digital Assets Data, a fintech company building cryptocurrency data feeds, as many as 10.7m Bitcoins have stayed put for more than a year. This amounts to 59% of the current supply of BTC (or approximately $84.5bn).
This indicates widespread HODLing of BTC, which could be an extremely bullish sign for the market. Rather than trading or transferring their Bitcoins, the majority of users are holding their digital assets, confident that higher prices are on the horizon.
Founder of blockchain PR agency EAK Digital and organiser of Istanbul Blockchain Week Erhan Korhaliller enthuses: “The fact that 60% of Bitcoin hasn’t moved from wallets in a year is confirmation that Bitcoin is seen as digital gold.”
Not only does this mark a major milestone for Bitcoins being held, but it also represents the highest percentage of BTC lying dormant for so long since the beginning of 2017. Nicholas Pelecanos, advisor to NEM Ventures, comments:
“An increase in the number of dormant BTC wallets simply means less BTC holders are willing to sell their BTC.
“This comes down to two core reasons: 1) The owner of the Bitcoin believes that the price will continue to appreciate and by holding now and selling later they stand a chance to make a profit. 2) The owner of the Bitcoin believes in the core principles that Bitcoin was built around and will hold onto their BTC because of their fundamental beliefs.
“In either scenario, this is bullish for the price of BTC as less supply on the markets will help create higher prices, particularly if