This is an interesting fact that may be critical for the future price of Bitcoin and other cryptocurrencies. It turns out that the Bitcoin supply remains steady since 2018. An analyst Bitcoin’s Rhythm published this chart:
11,580,00 bitcoin have not moved in over a year.
Even with a 85% increase in price during that time, those millions of bitcoin were not sold or traded.
Hodlers of last resort are insane. pic.twitter.com/KTpeDrLlOO
— Rhythm (@Rhythmtrader) December 1, 2019
11.6 million Bitcoins stay dormant, that is have not left their wallet for over a year. This amounts to 64% of all 18.08 million Bitcoins that have been mined globally so far.
At the same time, the capitalization of Bitcoin grows as the price rose from $3,100 to almost $14,000 in June, just to fall to as low as $6,500 on November 25.
It’s very interesting that these moves didn’t convince the hodlers to make some moves. The percentage of dormant Bitcoins in the global supply is growing, which makes Bitcoin more and more similar to gold kept in the vaults of central banks.
Bitcoin is positioning itself on the other side of the money to fiat currencies, where everyone gets strong incentives to borrow and spend, not to save the money, which will always be eroded by inflation.
The data puts altcoins in an interesting position as the role of medium of exchange in the world of cryptocurrency is still open.