Bitcoin is on an absolute tear at the moment, recently hitting the $30,000 mark for the first time in 10 months. It is currently trading for $30,229 according to CoinGecko. The cryptocurrency surges to levels not seen in months. The investors are clearly hoping that their investment will swell the longer they sit on it. This gives HODLing will never go out of style.
A Record High: Over Half of All Bitcoin Has Not Moved in Over Two Years
Recent figures from blockchain data firm Glassnode have revealed that more than half of the coins in existence have not moved in over two years. It is a new all-time high. According to Glassnode, the amount of Bitcoin which last moved more than two years ago stands at 53.14%. This represents a whopping 10.2 million Bitcoin -or roughly $309 billion-worth of satoshis. That’s money that’s been taken off the market and locked away. A sizable chunk of the 19.3 million Bitcoin that has been mined since the cryptocurrency came into existence.
Why is All This Bitcoin Being Hoarded?
Arkham Intelligence CEO Miguel Morel explained to Decrypt that it’s all about capital preservation: “Coins have organically transferred from those with high-time and liquidity preference to those with low-time and liquidity preference,” Morel said. “Through all the shake-ups, for every seller there’s a buyer.”
It’s a pattern that’s often associated with “whales” – those who’ve hoarded huge amounts of cryptocurrency and made absurd returns. Large investors likely re-distribute money between portfolios, while enthusiasts and new investors alike are looking to make low-risk, profitable investments.
Unfortunately, Glassnode has also reported that investors are less likely to spend coins after a 155-day holding period. This suggests that those who actually make money buying the oldest cryptocurrency are “sophisticated investors” who have deep pockets and are willing to wait for the market to shift – while the retail investor is more likely to lose out.
Forgotten, Misplaced, Irretrievable: Dormant BTC Returns
As for unclaimed coins, some of these dormant BTC may have been forgotten, misplaced and are now irretrievable. According to on-chain analytics provider Glassnode, just under 15% of all Bitcoin in circulation has not moved for a decade. It’s also worth noting that Bitcoin accumulation and holding are continuing. A reluctance to sell means that more of the asset is becoming dormant. However, the fact that dormant Bitcoin stashes have begun to return to the market is a sign of the times. After all, while unregulated, the cryptocurrency market has evolved significantly over the past decade. It is likely to attract more institutional investors in the near future.
What Does All This Mean For Investors?
Those who’ve held on since the bull market in 2021 may be making a wise move. After all, with current prices still down almost 60% from the all-time high in 2021, Bitcoin may be set to re-bound – and holding on to these ancient Bitcoin stashes could strike gold in the longterm. On the other hand, retail investors should be careful not to fall for get-rich-quick schemes and instead focus on developing a sound strategy. Either way, the fact that Ancient Bitcoin stashes are returning to the market will no doubt have crypto-HODLers rubbing their hands with glee.
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