15 mn Bitcoin stagnant in past 6 months amid cryptocurrency winter - Business Standard

Topics
cryptocurrency | Bitcoin | crypto trading
IANS | New Delhi
Last Updated at January 11, 2023 19:55 IST
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In a significant concern for many in the cryptocurrency community amid the deepening crypto winter, the total amount of inactive Bitcoin (BTC) for at least six months has grown to over 15 million.
According to an analysis by CryptoMonday.de, Bitcoin “hodlers” are becoming increasingly popular, with investors looking to hold onto their BTC longer.
Hodlers are long-term holders of a cryptocurrency, who buy and hold regardless of price.
Stagnant BTC supply since 2010 has slowly increased over the years, with a few exceptions in 2018 and late 2021.
“This indicates that Bitcoin holders are increasing their holdings rather than trading or moving them around,” said the report.
“The stagnation is due to the constant decline in BTC prices which has lowered people’s interest in trading at the moment. Besides, it is possible that the network is not used as much as it once was. This could be due to the increasing use of alternative cryptos like Ethereum,” said Jonathan Merry, CEO of CryptoMonday.
Bitcoin stagnation can be a concern for many people in the cryptocurrency community.
For one, it signals a lack of liquidity in the market that could cause massive price swings if there is even a slight change in demand.
It could also signal that institutional investors are making BTC lose its volatility and turning it into an asset with minimal price movement, said the report.
“It may be too soon to draw any conclusions from this data. Nevertheless, it is a clear indication that ‘hodlers’ are increasing their holdings and remaining confident in the future of Bitcoin,” said the report.
The BTC price remains stagnant at around $17,000 apiece for a while.
It is a possibility that BTC has reached a saturation point, with most of the people interested in buying BTC already having done so.
“Besides, the current economic conditions are not conducive to BTC growth. People are more interested in saving and investing their money rather than speculating on the future value of BTC,” the report noted.
–IANS
na/vd
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Wed, January 11 2023. 19:55 IST

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