New record: Half of the Bitcoin supply has not changed hands in 2 years
Bitcoin has experienced a bullish trend in 2022, which is reflected in the number of BTC stored. Savings or long-term storage of Bitcoin hit a new record in early February as holders expect a return to pre-2022 price levels.
49% of Bitcoin in long term holdings
According to data from research firm Glassnode, 49% of the total Bitcoin supply has remained in the same wallet for more than two years. This equates to more than 9.45 million Bitcoins or around $220 billion at the time of writing.
Glassnode explained this trend further with a graph showing that the previous peak came in the last quarter of 2020 and the beginning of 2021. The peak ended during the 2021 bull market because holders started selling when the price of BTC went up.
After the massive decline in the value of Bitcoin, the indicator fell and remained stable for most of last year. This means that Bitcoin holders decided to wait for a price increase before moving their assets in the middle of the bear market.
Related reading: Breaking: Bitcoin breaks above $24,000 for the first time in 2023
However, this trend has changed since December, with a significant increase driven by the consistent increase in the value of Bitcoin. Currently, 49% of Bitcoins have not been moved in two years, and investors are biding their time as we face another bullish cycle for BTC.
A bullish indicator for Bitcoin
The fact that investors have held on to their coins is a bullish indicator for Bitcoin and shows that there is still a lot of confidence in the leading cryptocurrency.
Bitcoin is considered the primary market mover, and several institutions hold the asset on their balance sheets. It is also legal tender in El Salvador and the Central African Republic, with several nations considering adding the digital currency to their list of national currencies.
BTC has also been used as a donation medium in the ongoing Russo-Ukrainian war, and the latest bullish cycle could create more inroads for adoption. Since the beginning of this year, Bitcoin has increased by around 38% and recently reached the $23,000 price mark for the first time since August 2022.
Long-term investors are likely preparing to take profits at higher levels as the price continues to reach new levels. Earlier in January, the amount of Bitcoin addresses in profit reached new levels, with 68% of addresses now in profit.
The last time this happened was in mid-2022, when the price of BTC was around $40,000 and in a sharp decline. So it’s a trend that we could be in for an extended bullish run in the coming months.
Related reading: Bitcoin derivatives market volumes show bullish trend after 2022 decline
Nevertheless, some believe that the first quarter of the year will witness a consolidation in the price of BTC before a significant price increase in the second half of the year. It would be interesting to see if this is a temporary price increase or a major bull run.
Featured image from Unsplash.com/ chart from TradingView and Glassnode.
