The sheer size of unmoved bitcoin could be a sign of the developing community of HODLers
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HODLing sentiment is currently at the strongest level in three years.
About 10.7 million bitcoins haven’t moved in more than 12 months, according to Digital Assets Data, a fintech company building crypto data feeds.
To put it another way, nearly 60 percent of the circulating supply has been lying dormant for over a year – the highest since early 2017.
That is a notable development, since bitcoin prices bottomed out and rallied over 90 percent in 2019.
The non-price metric has surged, possibly because investors are relying on popular stock-to-flow models, predicting a significant price rally following the mining reward halving, due in May.
Another possible reason could be that the sizable portion of investors are sitting on losses, having acquired coins well during the bull market frenzy observed in late 2017 and early 2018.
The cumulative sum of bitcoins locked up in addresses dormant for over a year may drop if the reward halving fails to put a strong bid under the cryptocurrency.
Halvings are not always bullish. For instance, litecoin, whose blockchain underwent halving in early August, is currently trading at $45, representing a 58 percent drop from the high of $107 seen in early August.
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Back Below $8,000
BTC: Price: $7,880 | Market cap: $143 billion | 24-Hr Volume: $27.70 billion
Trend: Bullish
Bitcoin has pulled back from seven-week highs above $8,400 reached during Wednesday's Asian trading hours.
The leading cryptocurrency is currently changing hands below $7,900, according to CoinDesk's Bitcoin Price Index, representing a 5 percent drop on a 24-hour basis.
A few observers have associated the price drop with the easing of the U.S.-Iran tensions. After all, bitcoin fell from $8,300 to $8,060 right after President Trump announced at 11 a.m. New York time on Wednesday that the U.S. will not escalate the conflict with Iran
Moreover, bitcoin has moved in tandem with gold since Friday, prompting some observers, including the popular analyst Ran NeuNer, to say that investors are now treating the cryptocurrency as a haven asset.
That makes bitcoin vulnerable to a deeper pullback in gold.
The technical outlook will remain bullish as long as prices are holding above key support at $7,567. Read Analysis |
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In this new feature of the markets daily newsletter, we aggregate news, reports, ideas and tweets relevant to crypto traders and investors.
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Binance Charity Initiated Australia Bushfire Donation Program (Binance)
The blockchain-based charity platform and official philanthropic arm of top crypto exchange Binance announced a new charity project aiming to help with the Australian bushfire relief. The $1 million donation aims to assist victims of one of the country's worst fire seasons in recent history.
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| | | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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