$1.6 Billion Bitcoin Remains Unmoved Since Purchase During Nov 2017 Bull Run: Delphi Digital Report
- The highest price of Bitcoin was recorded in the bull rally in the last two months of the year.
- Bitcoin reached a six-month low in October 2019.
There are two distinct types of Bitcoin investors that seem to arise, the ones that dump their Bitcoin when the prices change and ones that hold on to their Bitcoin for dear life. A recent article by The Next Web’s Hard Fork states that the declining value isn’t pushing some long-term holders to sell at all, noting that there is presently about 59% of the circulating supply of Bitcoin that has remained unmoved in at least a year.
Typically, the trends involving Bitcoin movement tend to coincide with the declining trading volume with Bitcoin, according to reports from the Delphi Digital research firm. Still, there’s a massive chunk of Bitcoin, 220,000 BTC, that hasn’t moved since it was purchased at the peak Bitcoin popularity at the end of 2017. Notably, the cryptocurrency nearly reached $20,000 in December 2017, though it has never risen this high again.
The last time that the price of Bitcoin rose above $9,000 was at the end of October this year, which is when trading activity spiked. However, the trading volume dropped to a six-month low at the end of last month. Delphi Digital analysts added,
“Declining volume has been the trend since the high back in June, symptom of a general decrease in new money entering the space.”
According to some of the top cryptocurrency exchanges, the month-over-month volume has decreased by 9.4% for Bitcoin. The spot USD markets are recording the biggest decline, which means that it’s entirely possible that less capital is coming into and out of the market.
Much of the inflow is attributed to the trading done on the Huobi and Binance exchanges, which accounts for over 50% of the deposits for Bitcoin every month since August.
“Strong increases” were recorded with OKEx and Huobi for the last few months by the analysts. However, they stated that the activity of Huobi was actually due to Plus Token, which is a cryptocurrency-based Ponzi scheme. Delphi Digital stated,
“The worst monthly decline since the same month last year definitely added insult to injury to the crypto market’s ongoing drawdown,”
“Fading catalysts and sentiment are partially to blame, but of the real culprits is the lack of new buyer demand.”
Explaining, the report stated that it looks like the capital is,
“being reshuffled among existing players who can ignite violent market moves given the minuscule size of this market, so a renewed enthusiasm among investors is going to be required for bitcoin (and crypto at large) to reverse its downward trend.”