Nearly $370 Billion in Bitcoin Has Gone 'Dormant'—Here’s Why

Nearly $370 Billion in Bitcoin Has Gone ‘Dormant’—Here’s Why

Bitcoin is largely stagnant, with the number of dormant coins nearing a new all-time high.

According to blockchain analytics firm Glassnode, the number of Bitcoins that haven’t moved for at least six months – dubbed “the old supply” – stands at 14.99 million, worth around $370 billion at current prices.

The all-time high is 15.029 million, Glassnode added, as of December. But why is this happening?

Another blockchain company, Arkham Intelligence, said Decrypt indeed, Bitcoin investors are once again focusing on long-term gains. “The Bitcoin community has clearly become more long-term oriented, focusing primarily on holding,” said CEO Miguel Morel.

“Other chains such as Ethereum have communities that build tools and services where coins move a lot more, mostly in search of profit.”

Glassnode added in the report that there is “a turning point in the cycle and a marked shift in investor behavior.”

The Bank for International Settlements released a report yesterday final that the investors who profit from buying the cryptocurrency are pro-traders and whalers, i.e. those who have held a lot of it for a long time or who have been savvy enough to sell before major declines .

Most Bitcoin buyers, according to the BIS report, entered the market on bull runs when the price was high, and these investors largely sold at a loss.

Dormant coins actually become “less and less likely to be spent” after a 155-day holding period, Glassnode previously said. The analytics firm noted in its report today that such activity has been seen in past bear markets, “potentially signaling a perception that the market is oversold,” meaning it could be about to bounce back.

Earlier this month, an old Bitcoin address that hadn’t been transacted in over a decade emptied his wallet– potentially to take a 120,000,000% profit from $9.6 million in Bitcoin.

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