Diar Crypto Study Reveals Connection Between Bitcoin’s Bottom and Over 40% Hodling
Around 42% of the Bitcoin in HODL Explains the $5,800 Price Floor
On September this year, a study was released by Diar found that about 42% of all the Bitcoin that are in circulation are being held in wallets which are containing about over 200 BTC, that have had about zero outgoing transactions taking place.
This is since the price peak that took place with the USD to about 20,000 in 2017 December. It is a clear indication that the bitcoiners are holding to their precious coins strongly, and this could be the explanation of the 5,800 USD support level that has under goner several tests in 2018 but still remains to be impenetrable.
More On The Study
The wallets that are holding about 200 BTC are classified as an investment wallet, since 26th September the BTC 200 is about $1.3 million. Not forgetting to mention that 27% of these wallets in the market have gone ahead to add to their wallets despite the fact that 2018 is facing a bear market.
The research has gone ahead to make estimates on the rest of Bitcoin; the study suggested that about 13% is used for the transaction and about 15% are still in the exchange wallets which are actively being sold and bought. While a whopping 30% of the Bitcoins, which is approximately 5.2 million could have gotten lost in the market or are just illiquid.
The estimation made of the lost Bitcoins dwarfs the other estimates that have been made, those that say BTC2 million was lost, but it also includes about 1 million BTC that has been mined by the Satoshi Nakamoto that have not yet moved, thus, are illiquid. As a result, it makes it difficult to estimate precisely how many Bitcoins are illiquid or even lost.
However, the important thing we need to learn from all this is that about 28% of the Bitcoins have been found to be illiquid and they are being actively traded. While 42% have been found to be held in the different investment wallets. It could be the explanation as to why despite the immense selling pressure that took place in 2018, Bitcoin has not gotten the chance to go below the USD 5,800.
Multiple times Bitcoin has been able to bounce off the 5,800 USD to about 6,500 USD. So what we are saying is that there are very few Bitcoins in the market that are liquid that can be dumped than those that are being held by the whales.