Despite price volatility, growing inflation, and geopolitical concerns, the bulk of BTC supply has remained in wallets since the beginning of the year, according to data from on-chain analytics firm Glassnode.
It reflects Bitcoin’s growing appeal among institutional and retail investors, with no one willing to sell it.
Glassnode tweeted on Monday that the Bitcoin Illiquid Supply Shock Ratio (ISSR), which represents the coins held in wallets with little to no history of spending, has ticked significantly higher this week.
Investors are becoming more interested in Bitcoin.
Since the beginning of the year, the Bitcoin Illiquid Supply Shock Ratio, which was first developed by on-chain analyst Will Clemente, has been going significantly upward. And the ratio is set to rise even further this week. The illiquid BTC supply consists of coins retained in wallets with little or no spending history. It is presently 3.2 times greater than the combined supply of Liquid and Highly Liquid.
This data are significant because they indicate that long-term hodlers are patiently hodling because they are aware of what is expected to happen soon. Despite soaring inflation, even Elon Musk maintains he has no plans to sell his Bitcoin, Ethereum, or Doge. Crypto prices rose slightly as a result of Musk’s tweet on Monday, with Bitcoin gaining about 2% to over $39,000.
Furthermore, a decline followed and preceded a strong bounceback in Bitcoin price action on two earlier occasions in 2016 and 2020, according to historical price movement.
Other issues, such as the fact that EU ministers are scheduled to vote on two versions of the MiCA law, one with and one without the POW ban, must be taken into account. The EU parliament is concerned about the high energy costs and carbon footprint of mining POW tokens.
Meanwhile, a comparison of the top assets by market size over the weekend shows that Bitcoin, XRP, and Binance Coin are displaying evidence of traders anticipating price increases. According to a tweet from Santiment, a financial market analytics and content portal, trader sentiment on Polkadot is negative.