As a seasoned crypto investor with over a decade of experience in this dynamic and ever-evolving market, I find myself increasingly optimistic about Bitcoin’s future. The decreasing number of holders willing to sell their BTC, as evident from recent data, is a testament to the growing faith in this digital asset.
In contrast to Ethereum, which has a variable supply that adjusts annually based on network activity, Bitcoin stands as a scarce asset with a predetermined total of 21 million units. Moreover, an amount surpassing 4 million Bitcoin tokens are considered lost and unrecoverable.
Fewer And Fewer Holders Willing To Sell Bitcoin
Currently, statistics indicate that an increasing number of people are holding onto their Bitcoin rather than selling it. Data from Bitcoin’s long-term and short-term holder supply cycles suggests that less than 10% of holders were interested in selling as of October 2024. This is significantly lower compared to the 26% recorded around mid-2021 and the 64% seen in 2013, demonstrating a trend towards increased retention of Bitcoin.
It’s worth noting that both long-term and short-term investors are choosing to sell their Bitcoins, despite its inherent volatility which often leads to significant price fluctuations in the short term.
From a broader viewpoint, Bitcoin’s current value is 15% lower than its record high set in March 2024. Yet, it has experienced an impressive growth of almost 150%, climbing from approximately $27,000 in October 2023. The prices for Bitcoin in 2022 took a dip, falling below $16,000 after reaching close to $70,000 in November 2021.
Bitcoin’s circular pattern, supported by hard evidence, doesn’t seem to deter traders who sell when prices drop dramatically. Over time, this trend indicates an increase in optimistic holders regarding the digital currency’s long-term prospects and its potential as a store of value. In simpler terms, despite Bitcoin’s cyclic fluctuations, many investors remain hopeful about its future worth and its role as a valuable asset.
Traders Playing Don’t Want To Dump, Institutions Loading Up
As an analyst, I suspect that there are several elements contributing to this pattern, yet one of the most significant seems to be the increased participation from institutional investors. This surge appears to have been particularly triggered by the U.S.’s approval of the first Bitcoin ETF earlier this year.
As reported by Soso Value, U.S.-based Bitcoin ETF managers collectively manage approximately $57 billion worth of Bitcoin. Among these, BlackRock oversees more than $21.5 billion in assets belonging to users, while Grayscale, which is currently liquidating its GBTC product, has experienced outflows totaling over $20 billion since the introduction of the derivative product in January.
Currently, as CEO of Blockstream, Adam Buck notes the absence of options (be it call or put) with durations exceeding one year. He explains that this is largely due to the reluctance among most options traders to part with their call options because, if they do, these calls are typically snapped up instantly by other investors.
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2024-10-07 23:41