Bitcoin Scarcity Hits Record Level as Long-Term Holders Remain Resilient
Recent data from the on-chain analytics platform IntoTheBlock reveals that a significant portion of the accessible supply of Bitcoin has been securely stored away by long-term holders. These holders have shown a strong commitment to the cryptocurrency, ramping up their exposure starting from mid-2021 and holding throughout the bear market. As a result, as of October, 80% of all Bitcoin is now owned by long-term investors, representing a record high. This increased scarcity of Bitcoin has coincided with a recent rally in its price, with the cryptocurrency reaching over $35,000.
The data also indicates that there was significant accumulation of Bitcoin in the $25,000-$31,000 range, a sign of long-term bullishness among investors. This trend, along with the upcoming Bitcoin halving which will further reduce inflation, suggests that the scarcity of the cryptocurrency will continue to increase. Investment bank Morgan Stanley has also expressed bullish sentiment, predicting that the halving event next year will spark a new bull run. In addition to these factors, the renewed optimism around the potential approval of a spot Bitcoin ETF in the United States has played a significant role in driving the recent price rally. Institutional investors are closely watching regulatory developments and are expected to enter the market in large numbers once a Bitcoin ETF receives regulatory approval.
Hashtags:
#Bitcoin
#cryptocurrency
#BTC
#longtermholders
#scarcity
#halving
#institutions
#ETF
Image: https://weeklyfinancenews.online/wp-content/uploads/2023/09/bitcoin8.png
Comments are closed.