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Understanding the Record-High Percentage of Unmovable Bitcoin

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On April 10th, Morgan Creek founder Anthony Pompliano cited Glassnode data and stated on Twitter that the supply of unmovable Bitcoin in the past two years has reached a record hig

Understanding the Record-High Percentage of Unmovable Bitcoin

On April 10th, Morgan Creek founder Anthony Pompliano cited Glassnode data and stated on Twitter that the supply of unmovable Bitcoin in the past two years has reached a record high of 53%. In addition, nearly 29% of circulating Bitcoins have not moved in the past 5 years, while nearly 15% of circulating Bitcoins have not moved in the past decade.

Data: The supply of unmovable Bitcoin in the past two years has reached a record high of 53%

Bitcoin is a unique digital asset that has witnessed a remarkable surge in value since its inception. However, recent data from Glassnode reveals that there exists a significantly high percentage of Bitcoin supply that has not been moved for an extended period. On April 10th, Morgan Creek founder Anthony Pompliano cited Glassnode data and stated on Twitter that the supply of unmovable Bitcoin in the past two years had reached a record high of 53%. Furthermore, the data highlights that almost 29% of circulating Bitcoins have remained stagnant for the past 5 years, while about 15% of circulating Bitcoins have not moved in the last decade. This article delves deeper into understanding the record-high percentage of unmovable Bitcoin and what it means for the cryptocurrency industry.

The Increasing Number of Unmovable Bitcoin

One of the main reasons for the high number of unmovable Bitcoin is the rise of long-term holders. Bitcoin has existed for over a decade and has witnessed numerous market cycles. Long-term holders are those who acquire Bitcoin and hold onto it for an extended period, irrespective of the market movements. These holders believe in the inherent value of Bitcoin and view it as a store of value. As a result, it is not uncommon for Bitcoin to remain stagnant in their wallets for several years.
Moreover, institutional investors have also contributed to the high percentage of unmovable Bitcoin. In recent years, several reputed institutions have invested in Bitcoin, including Tesla, Grayscale Bitcoin Trust, and Microstrategy. These firms have allocated a significant portion of their balance sheets to Bitcoin as a hedge against inflation and a store of value. Therefore, it is unsurprising that a considerable percentage of Bitcoins in circulation have remained unmovable.

The Implications of Unmovable Bitcoin

The high percentage of unmovable Bitcoin has both positive and negative implications for the cryptocurrency industry. On the one hand, it showcases the growing adoption of Bitcoin as a store of value. Traditional investors who earlier dismissed Bitcoin as a speculative asset are now considering it as a potential investment. Furthermore, the high percentage of unmovable Bitcoin also reduces the circulating supply of available Bitcoins, creating a potential supply squeeze effect on exchanges that could drive the price further up.
However, the negative implications of unmovable Bitcoin also exist. The high number of stagnant Bitcoins makes it difficult for traders and investors to determine the market sentiment accurately. It is challenging to predict whether a long-term holder will sell their holdings, which could impact the price of Bitcoin significantly. Additionally, the active supply of Bitcoin reduces, making the cryptocurrency more illiquid. This illiquidity is of particular concern when investors want to move large amounts of Bitcoin, which could result in slippage and significant volatility.

The Future of Bitcoin

The record-high percentage of unmovable Bitcoin highlights the growing adoption of Bitcoin as a store of value. It also underscores the need for market participants to consider long-term holding as a viable investment strategy. The rise of institutional investors and the increasing number of individuals viewing Bitcoin as a long-term investment vehicle will likely cause the percentage of unmovable Bitcoin to continue increasing.
In conclusion, despite the challenges of illiquidity and market uncertainty, the high percentage of unmovable Bitcoin signifies the growing adoption of Bitcoin as a store of value. It is essential to note that the cryptocurrency industry is still in its nascent stages, and future developments, such as increased regulation, could impact the behavior of holders and the market sentiment. However, the continued increase in the percentage of unmovable Bitcoin showcases the potential of Bitcoin as a viable long-term investment vehicle.

FAQs

Q: What is the definition of unmovable Bitcoin?
A: Unmovable Bitcoin is BTC that has remained stagnant or inactive for an extended period.
Q: What are long-term holders?
A: Long-term holders are individuals or entities that have acquired Bitcoin and held onto it for a prolonged period of time.
Q: What are the implications of unmovable Bitcoin for traders and investors?
A: Unmovable Bitcoin makes it challenging to determine the market sentiment accurately, and it could result in illiquidity and market volatility.
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