Bitcoin, the world’s largest cryptocurrency, has seen a significant increase in investor confidence, with a record 70% of its supply remaining inactive for over a year. This milestone indicates a strong belief in the long-term value of Bitcoin among its holders. The data from Glassnode, a blockchain and market intelligence platform, reveals that the percentage of Bitcoin supply that has not been transacted for a year or more, also known as the ‘HODL Waves’ indicator, has reached an all-time high.
This trend suggests that despite the market’s volatility, Bitcoin holders are choosing to hold onto their assets, demonstrating their confidence in the cryptocurrency’s future performance. In addition to this, more than 80% of Bitcoin’s supply has returned to profit. This indicates that the majority of Bitcoin investors are now in a profitable position, further boosting investor sentiment.
Despite Market Volatility, Bitcoin Holders Remain Optimistic
The increased holding period and return to profit come at a time when Bitcoin’s price has been experiencing significant fluctuations. Despite these market dynamics, long-term holders, often referred to as ‘HODLers’ in the crypto community, appear to be undeterred. Their actions suggest a bullish outlook on Bitcoin’s long-term value, reinforcing the notion that Bitcoin is viewed as a ‘store of value’ akin to digital gold.
Moreover, institutional investors are also showing confidence in Bitcoin. A recent survey revealed that 65% of institutional investors expect Bitcoin to reach $100,000. This optimistic outlook from major financial players further underscores the growing confidence in Bitcoin’s potential.
The emergence of alternative Bitcoin investment methods, such as exchange-traded funds (ETFs) and futures, may distort the actual market situation. Although a significant portion of Bitcoin is held in ETFs and remains inactive, it’s important to note that investors can trade units of these ETFs on exchanges.
In conclusion, the record high of Bitcoin’s inactive supply, coupled with the return to profit for a significant portion of Bitcoin’s supply and positive sentiment from institutional investors, paints a promising picture for Bitcoin’s future. These trends highlight the enduring faith in Bitcoin among its investors, suggesting a bright outlook for the world’s leading cryptocurrency.
