$1Trillion Hit by Bitcoin Store of Value: Epic Milestone by CryptoQuant CEO

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As a seasoned analyst with over two decades of experience in financial markets, I have witnessed the rise and fall of numerous investment trends. However, nothing quite compares to the meteoric rise of Bitcoin (BTC) as a store of value (SoV). The sheer magnitude of the $1.03 trillion equivalent parked across exchanges and wallets is mind-boggling, especially considering its volatility and the low transparency of centralized exchanges and over-the-counter trading platforms.

My life in finance has taught me to be cautious and skeptical when it comes to investment trends, but even I have to admit that Bitcoin’s evolution into an unbelievably large SoV is nothing short of extraordinary. The methodology used to calculate this metric, combining off-chain and on-chain data, provides a glimpse into the true scale of Bitcoin’s influence.

The fact that the Bitcoin SoV metric jumped by 85% in just one year is truly astonishing and speaks volumes about the growing confidence investors have in this digital asset. Despite its volatility, Bitcoin continues to prove itself as a robust store of value, outpacing many traditional assets in terms of growth.

However, it’s important to remember that even the most promising investments can face setbacks, and Bitcoin is no exception. The recent 1.12% drop in its price serves as a reminder that investing in Bitcoin carries inherent risks. But for those willing to take on that risk, the potential rewards could be significant.

In terms of humor, I’d like to add: “I never thought I’d see the day when people would park their hard-earned cash in something as unpredictable as a digital cat meme, but here we are. Welcome to the wild world of Bitcoin!

According to the CEO of CryptoQuant, Ki Young Ju, an estimated total value of more than $1.03 trillion worth of Bitcoin (BTC) is being stored across various exchanges and personal wallets worldwide, suggesting that it may function as a store of value. This colossal amount has been calculated using data from centralized exchanges and over-the-counter transfers.

$1,030,000,000,000: Bitcoin “Store of Value” metric adds 85% in 2024

As an analyst, I find myself in awe at the staggering growth of Bitcoin (BTC), the leading cryptocurrency, as it has transformed into a massive reservoir of value. Remarkably, across diverse service categories, there could potentially be over $1.03 trillion worth of holdings, according to Ki Young Ju, CEO of CryptoQuant, as he communicated to his 390,000 followers on Twitter.

Bitcoin functions as a means to store wealth or value. How much money is currently being held within its network? By considering both on-chain and off-chain data, an estimated total of approximately $1.03 trillion is stored there, marking a significant increase of around 85% this year.

— Ki Young Ju (@ki_young_ju) December 30, 2024

Calculating the metric associated with Bitcoin (BTC) can be quite challenging due to its high volatility, limited transparency of centralized exchanges, and the obscurity surrounding over-the-counter (OTC) trading platforms. Ki Young Ju outlined a methodology aimed at determining the actual amount of funds held in BTC.

The Store-of-Value (SoV) measure for Bitcoin takes into account the product of exchange reserves and the Volume Weighted Average Price (VWAP). This figure represents an approximation of the money flowing into the market through exchanges. Essentially, it calculates the average price at which Bitcoin was bought by market participants over a specific timeframe.

In addition, the Store of Value (SoV) indicator for Bitcoin takes into account U.S. dollar-based Over-the-Counter (OTC) transactions as well as deposits and withdrawals from exchanges. Moreover, it monitors the real-time price at which these transactions are executed.

In the past 12 months, this crucial indicator jumped by 85%, the CryptoQuant CEO added.

Bitcoin (BTC) hashrate routinely prints ATH today

The value of the Bitcoin (BTC) Store-of-Value (SoV) metric hit $130 billion at its peak price in 2017, but later surged to an all-time high of $700 billion in 2021. During this bullish market trend, the SoV indicator broke its earlier record from early Q3 of 2024, as the data indicates.

As the year 2024 drew to a close, key performance indicators within the Bitcoin network attained record levels. The hashrate of Bitcoin surged to an impressive 841.64 Ehash/s, representing a 3.81% increase over the preceding 24 hours.

Additionally, following today’s adjustment, the mining difficulty for Bitcoin (BTC) reached approximately 108 trillion. Over the past year, this measure has increased by over 50%. The increase in both the difficulty level and the hashrate suggest that Bitcoin miners are becoming increasingly optimistic, as an increasing number of computers join the network.

Instead of increasing as other assets might have, the price of Bitcoin (BTC) actually decreased by 1.12% in the past 24 hours, falling down to approximately $93,900.

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2024-12-30 16:32