Bitcoin is Increasing in Value, But Most of Investors BTC Stashes Haven’t Moved in Over a Year
- Bitcoin has seen over 200% in growth since the start of the year.
- Despite growth, over 60% of all Bitcoin has not seen any movement in the last year or more.
All eyes are on the value of Bitcoin lately, as it holds on strongly to a place above the $10,000 threshold. In fact, it appears that the value of this cryptocurrency has increased by 220% since the year began, but it does not look like the long-term holders of Bitcoin are making any changes to their habits right now. Reports from The Next Web’s Hard Fork indicate that, despite the stellar quarter that Bitcoin has had.
While new sellers have come into the market, the movement of the current holders of Bitcoin would be a major catalyst for gains. Delphi Digital, an independent research firm, said that the investors who are active in Bitcoin are causing a surge in activity, primarily involving new sellers, which the firm considers to be “individuals who’ve been holding for three-to-six months.”
Using data from the “Unspent Transaction Output” (UXTO) Delphi Digital was able to see how long Bitcoin has been held by certain wallets. As Hard Fork explains, the time that Bitcoin is held in one location is called the UXTO age. By taking into account the cumulative UXTO age of all Bitcoins, the firm can determine how long Bitcoin has been held onto. The age rises as the holders of Bitcoin refrain from selling off their cryptocurrency, and it can fall as the supply is consistently moved around and used.
Based on the analysis by Delphi Digital, there is about 60% of all Bitcoin’s supply in circulation that have not seen any movement in a year or more, which is shown on the chart below on the green line. The chart also shows how the untouched Bitcoin has remained in the last five years with the light blue line, of which 21.5% has not moved in the last five years. Delphi Digital commented, “This naturally leads us to wonder who the current sellers are in this market.”
Evaluating the market sentiment, Delphi Digital chose to examine how much Bitcoin has gone through Binance, Bitfinex, and other exchanges. In their findings, the firm discovered a drastic increase in this activity since the year began, showing the outflow exceeding double the outflows through springtime.
The increase in outflows for Bitcoin follows what Delphi Digital believes is natural, considering that there are many people who recently invested in Bitcoin that may choose to hold onto it, transferring to other exchanges. As the outflows increase, the price of Bitcoin started to rally in April.
Many Bitcoin holders are choosing to push their funds through Binance with deposits, accounting for 47% of the BTC inflow in the last month alone. In the first quarter of the year, this percentage was only 24%.
Now, Delphi Digital believes that Bitcoin could ultimately rise above $13,000, though a pull-back could end up coming back anyway. The firm sees this surge as a “blow off top,” causing Bitcoin to see sideways movement for a bit, clearing the path for an “alt season.” The firm added, “A move of this size and concentration to any exchange would suggest selling, but because it’s Binance, it leaves open the possibility that individuals are looking to move into alts now.”
With this in mind, Delphi Digital warned that it could be difficult to actually time an alt rally, comparing this attempt to “catching a falling knife.” Instead, the firm explained, “It makes more sense to instead forgo some early upside on alts and wait for a strong confirmation.”
At the time of writing, Bitcoin is worth $10,329.94, dropping by 8.34% in the last 24 hours.