For the past year, 63% of the entire Bitcoin supply has remained illiquid, falling only 0.3 percent short of the new all-time high. Along with the growth in long-held supply, there is evidence of “weak hands” dumping their holdings more aggressively than investors who acquired BTC a long time ago.
As Will Clemente’s data indicates, the supply that has remained unchanged for over a year is growing, indicating that more investors choose to hold over active speculating and trading.
While an increase in illiquid supply may be seen negatively in the conventional economy, the increase in coins remaining unspent would result in a gradual increase in the price of an asset, according to the basic rule of supply and demand.
Because less supply is available for trading, owning, and utilizing while demand stays constant, the asset’s price will almost certainly increase over time. However, with Bitcoin, the market and its holders are subject to additional considerations such as unfavorable investing conditions, restrictions, and other constraints.
Bitcoin continues to gather momentum
Following the market’s four-month downturn, Bitcoin has finally broken out of the long-term range in which it had been trading continuously between $45,000 and $37,000 for nearly 55 days.
The first cryptocurrency might recoup nearly 20% of its value in less than a month due to inflows in the cryptocurrency market.
Above press time, Bitcoin is trading at $46,380, far above all past short- and medium-term resistance levels on the chart. Along with the excellent price performance, technical indicators on the chart are trending in the same direction as the price.