• Over two-thirds of the Bitcoin supply has not moved in a year despite volatile market conditions.
• Over half the supply has not moved in two years or longer and 28% has been stationary for 5 years.
• A “supply squeeze” is predicted as a result of the limited Bitcoin supply cap and increasing demand.
Two-Thirds of Bitcoin Supply is Unmoved
The cryptocurrency market has seen a lot of changes over the past year, with many scandals such as LUNA, Celsius and FTX crashing the market, combined with rapid monetary tightening that caused interest rates to rise from near zero to close to five percent. Despite these changes, an all time high of 67.9% of Bitcoin’s overall supply remain unmoved in over a year.
Long Term Holders
It appears that there is a growing group of Bitcoin investors who are holding onto their coins long term — over half of the entire supply hasn’t been moved in two years or longer, while 40% have remained unchanged for three years or more and 28% have stayed still for five years or more. This could be attributed to lost coins due to death or forgotten keys, people being unaware that Bitcoin was once worth only one dollar per coin and also due to speculation about a future ‘supply squeeze’ when demand outstrips available Bitcoins due to its finite cap at 21 million coins total.
Price Action
The price action during this period has seen its fair share of ups and downs — initially starting at $41000 it fell down to $15000 before rising back up again towards $28000 where it currently sits today. These figures show an incredible level on investor trust in cryptocurrency despite all tumultuous events taking place around it.
Future Possibilities
Whether predictions about a future ‘supply squeeze’ come true remains uncertain however they do demonstrate investor confidence in cryptocurrency technology despite any short term volatility taking place within its markets — suggesting that those who hold onto their coins long term may be rewarded handsomely if these predictions turn out true.
Conclusion
In conclusion, it appears that even amidst turbulent times within the crypto market there are many investors who remain confident in its potential for growth – with two thirds of its overall supply remaining unmoved for one year or more regardless of any external forces acting upon it.
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