New Delhi, January 11: 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. FTX Says Cryptocurrency Exchange Hacked, Over $600 Million Disappear A Day After Filing Chapter 11 Bankruptcy in US.
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. Cryptocurrency Crash: China Warns Bitcoin Is Heading to Zero.
"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.
(The above story first appeared on LatestLY on Jan 11, 2023 07:33 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).