A popular cryptocurrency analyst called “Documenting Bitcoin” has published fresh information data on Tuesday showing that half of all Bitcoin (representing 9.64 million BTC worth $86.4 billion) has not been transferred over the past two years.
At the time of writing, there are 19.28 million BTC in circulation and the number of untouched coins is approximately 50% of the current supply. Untransferred BTC is determined by how much of the cryptocurrency remains illiquid in its holders’ wallets over a given period compared to the total supply.
Institutional demands driving up the BTC price
Data shows that 50% of bitcoins in circulation remained intact in the wallet for two years. This coincides with a period in which digital assets have enjoyed increasing interest from institutional investors. Institutions buy vast amounts of Bitcoin and hold it for long-term purposes, with no intention of selling it. This helped raise the cryptocurrency’s valuation.
Although Bitcoin’s price reached an all-time high of $69,000 in November 2021, most investors have chosen to hold on to the coin over the past two years despite price fluctuations. Institutions continue to recognize cryptocurrency’s long-term potential and are increasing their allocations despite the sector experiencing a severe bear market.
Data published last November showed that 62% of institutions invested in cryptocurrency increased their holdings in the last 12 months. The study found that only 12% of institutional investors reduced their exposure to cryptocurrencies, which means most institutions remain bullish on cryptocurrencies long-term despite the price decline. Of course, crypto winter has created an opportunity for long-term users to buy the dip.
Half of Bitcoin has remained unchanged for two years, which means the virtual asset is becoming a store of value, a digital version of gold that people exploit to hedge against inflation. This is a significant development for the Bitcoin ecosystem as it signals a growing level of long-term trust and stability among investors.
Bitcoin has a maximum of 21 million BTC. This steady supply supports ever-increasing demand, which continues to provide a long-term bullish base for the cryptocurrency.
Bitcoin price action
Looking at the price chart below, in December 2021, Bitcoin was trading around $50,000. However, in early 2022, things started to fall apart. In January last year, its price dropped below PLN 42,000. dollars.
In May, the cryptocurrency was trading at around $39,000 before dropping sharply to $29,000. June was a period in which the price of this crypto asset fluctuated between $19,000 and $20,000. In November, the price of BTC fell to the level of $16,000, and since then the cryptocurrency has managed to rise thanks to better macroeconomic connections.
Bitcoin is up about 30% so far this year. The cryptocurrency is currently trading at $23,011, up 0.43% in the last 24 hours, with a trading volume of $24 billion. According to the data of this digital asset, it is the most crucial cryptocurrency with a market capitalization of $443 billion. Coinmarketcap.
