According to data compiled by Glassnode, a cryptocurrency transaction analysis platformmore than half of bitcoins in circulation has remained inactive for the past two years.
Bitcoin would not circulate much for almost 10 years
Indeed, on April 10, Anthony Pompliano, cryptocurrency specialisthighlighted the fact that 53% of the circulating bitcoin supply had remained idle over the past two years.
To support his point, Anthony Pompliano cited data published by Glassnode, stating that this proportion was unprecedented in the history of bitcoin and that it was a specific metric tracked by the data platform.
In addition, the crypto-entrepreneur has focused on other indicators, such as bitcoin, which has hardly moved for five and ten years. Indeed, according to the data, almost 29% of the Bitcoin supply in circulation has been standing for the past five years. At the time of writing, this percentage represents more than 5.6 million BTC, worth around $158 billion.
In addition, it is estimated that approximately 2.7 million BTC, worth $76 billion, have not been touched for a decade. According to Pompliano, these bitcoins would either be lost or in the hands of “the most disciplined investors in the world”.
We can estimate that these famous investors practice HODL or “hold on for dear life”. It’s about a crypto investment strategy which results in the fact that the investor prefers to keep his assets instead of selling them.
This strategy is made for the long term and it could explain the current situation. Certainly these investors are waiting for bitcoin to break above its all-time high to sell. Or else they matter retain their BTC for life and pass them on to their descendants as an inheritance.
For some members of the community, this data suggests that holders bought bitcoins when BTC was at its highest level and are anticipating the right time to sell them back. According to CoinGecko, the cryptocurrency news aggregator, BTC traded on April 10, 2021 at over $60,000.
Bitcoin is still of interest to the general public and investors
For some time, bitcoin has been at the center of attention around the world and especially in the United States. This was demonstrated on the web when the keyword “Bitcoin” recently topped the list of most popular, searched phrases in the United States. This trend suggests that Americans have been curious about bitcoin lately.
Indeed, last week, this keyword passed other keywords that were heating up the news. This is the case of Donald Trump, the former president of the United States, who appeared in court on several counts. Other hot topics include Elvis Presley, the American singer.
Americans are more and more interested in bitcoin since the United States Federal Reserve (Fed) announced the launch of the FedNow payment system. In a press release published on March 16, the US government announced the launch of the instant payments platform in July.
Americans’ interest in bitcoin can also be explained by the status of this cryptocurrency. Apart from being the very first digital currency and having a very low total supply compared to its competitors, bitcoin is also called “digital gold.” This crypto is therefore considered a safe haven currency that would allow some investors to face the financial crises increasingly recurrent.