Unmovable Bitcoin Supply Reaches Record High: What Does This Mean for Investors?
On April 10th, Morgan Creek founder Anthony Pompliano cited Glassnode data and stated on Twitter that the supply of unmovable Bitcoin in the past two years has reached a record hig
On April 10th, Morgan Creek founder Anthony Pompliano cited Glassnode data and stated on Twitter that the supply of unmovable Bitcoin in the past two years has reached a record high of 53%. In addition, nearly 29% of circulating Bitcoins have not moved in the past 5 years, while nearly 15% of circulating Bitcoins have not moved in the past decade.
Data: The supply of unmovable Bitcoin in the past two years has reached a record high of 53%
In a tweet on April 10th, Anthony Pompliano, the founder of Morgan Creek, highlighted data from Glassnode revealing that the supply of unmovable Bitcoin has reached an all-time high of 53% in the past two years alone. Furthermore, 29% of circulating Bitcoins have remained untouched for the past 5 years, while 15% of circulating Bitcoins have remained untouched for the past decade.
What does this mean for investors? Is this trend likely to continue, or is a correction inevitable? In this article, we will explore the implications of the rising supply of unmovable Bitcoin and what investors can learn from this data.
The Definition of Unmovable Bitcoin
Before we dive into the data, it’s important to define what we mean by “unmovable Bitcoin.” This term refers to Bitcoin that has not been transferred between wallets for a certain period of time. In other words, unmovable Bitcoin is “inactive” Bitcoin that is not being used for transactions or other activities on the blockchain.
The Rising Supply of Unmovable Bitcoin
According to Glassnode, the supply of unmovable Bitcoin has been steadily increasing over the past few years. As of April 10th, 2021, the supply of unmovable Bitcoin reached a record high of 53%. This means that more than half of all Bitcoin in circulation has not been moved between wallets in the past two years.
Why is this happening? There could be several factors at play. Some investors may simply be holding on to their Bitcoin as a long-term investment, expecting its value to increase over time. Others may be wary of selling their Bitcoin at current prices, hoping for even better returns in the future. Additionally, some Bitcoin may be lost or inaccessible due to forgotten passwords or other technical difficulties.
What This Means for Bitcoin Investors
For investors, the rising supply of unmovable Bitcoin could have both positive and negative implications. On one hand, it could suggest that many investors are holding on to their Bitcoin for the long term, which could help to stabilize the market and prevent sudden price drops. On the other hand, it could signal a lack of trading activity and decreased liquidity, which could make it harder for investors to buy or sell Bitcoin at their desired prices.
Furthermore, the fact that nearly 30% of circulating Bitcoins have not moved in the past 5 years and 15% have not moved in the past decade raises questions about the overall health and future of the Bitcoin ecosystem. Will these inactive coins continue to stay “locked up,” or will they eventually be sold or otherwise put back into circulation? And if they are sold, how will this impact the market?
What Can We Learn from This Data?
The rise in unmovable Bitcoin supply highlights the importance of taking a long-term view when investing in cryptocurrencies. While it can be tempting to try to time the market or make quick profits, holding on to Bitcoin for the long term may be a more prudent strategy. Furthermore, this data underscores the importance of considering liquidity when investing in Bitcoin, as decreased liquidity could make it harder to buy or sell Bitcoin when you need to.
Additionally, the fact that so much Bitcoin has remained “inactive” for several years raises interesting questions about the potential future of the market. Will these coins eventually be sold, or will they remain locked up indefinitely? Only time will tell.
Conclusion
The rising supply of unmovable Bitcoin is a fascinating trend to watch for investors in the cryptocurrency market. While it could suggest a certain level of stability in the market, it could also raise concerns about liquidity and the overall health of the Bitcoin ecosystem. As always, it’s important for investors to take a long-term view and consider all factors when making investment decisions.
FAQs
Q: What is unmovable Bitcoin?
A: Unmovable Bitcoin refers to Bitcoin that has not been moved between wallets for a certain period of time.
Q: Why is the supply of unmovable Bitcoin increasing?
A: There are likely several factors at play, including long-term investment strategies, hesitation to sell at current prices, and lost or inaccessible coins.
Q: What are the implications of the rising supply of unmovable Bitcoin for investors?
A: The trend could suggest stability in the market but could also lead to decreased liquidity and potential trading difficulties. It underscores the importance of taking a long-term view and considering all factors when investing in Bitcoin.
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