Unmovable Bitcoin Supply Reaches Record High in 2021: A Detailed Analysis

04/10/2023 07:20 • Blockchain Briefs • 76 views

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 recent years, cryptocurrencies have become a popular mode of investment, with Bitcoin being the most famous among them. While people invest in Bitcoin, they often forget to keep track of their investments, leading to a surge in unmovable Bitcoin supply. In this article, we will analyze the recent Glassnode data cited by Morgan Creek founder Anthony Pompliano and discuss the increasing trend of unmovable Bitcoin supply.

Understanding the Data

On April 10th, Anthony Pompliano referred to the Glassnode data that revealed the record high of 53% unmovable Bitcoin supply in the past two years. It means that around 53% of Bitcoin owners have not moved their Bitcoins in the past two years. Furthermore, almost 29% of circulating Bitcoins have not been transferred for the past five years, while roughly 15% of circulating Bitcoin has remained stationary for the past decade.
This data proves that an increasing number of people are considering Bitcoin as a long-term investment and are holding onto it for an extended period. In addition, these holders are convinced about the future value of Bitcoin and believe it will grow significantly over time.

Reasons for Unmovable Bitcoin Supply

Multiple factors contribute to the mounting trend of unmovable Bitcoin holdings. One of the primary reasons is that Bitcoin holders anticipate a significant rise in its value over the long term. As a result, they tend to hold onto their assets and wait for the right time to sell, which leads to the increase in stationary Bitcoin.
Another reason for the increasing trend of unmovable Bitcoin is the emergence of cold storage or offline wallets. A significant portion of the unmovable Bitcoin is stored in these wallets, making it challenging for hackers to access them. People prefer cold storage to keep their Bitcoins safe and protect them from potential cyberattacks.

Implications of Unmovable Bitcoin Supply

The surge in unmovable Bitcoin supply carries significant implications for the Bitcoin market as a whole. Firstly, it affects the Bitcoin price as the decreasing supply leads to a rise in demand, resulting in a surge in Bitcoin’s value. Secondly, it affects the market’s liquidity, making it difficult for investors to buy or sell Bitcoin in large amounts. Lastly, it hinders the miners’ ability to sell Bitcoins, which could lead to a reduction in mining rewards.

Future of Bitcoin

Despite several challenges, Bitcoin continues to be a popular investment choice among people. The surge in unmovable Bitcoin supply is evidence of people’s faith in Bitcoin’s future value. Some experts predict that Bitcoin’s value could reach as high as $100,000 by the end of 2021, which could attract more investors to consider Bitcoin as a long-term investment.

FAQs

1. Why do Bitcoin holders tend to store their coins for an extended period?
Ans: Bitcoin holders tend to hold onto their Bitcoins for a long time because they believe that the value of Bitcoin will rise significantly in the long term.
2. How does unmovable Bitcoin supply affect Bitcoin’s price?
Ans: Unmovable Bitcoin supply leads to a decrease in circulation, resulting in increased demand that drives the Bitcoin price.
3. What is cold storage, and why is it becoming increasingly popular?
Ans: Cold storage is a storage mechanism that stores Bitcoin offline in a way that keeps it safe from potential cyberattacks. It is becoming increasingly popular because it ensures the security of Bitcoin holdings.

Conclusion

The increasing trend of unmovable Bitcoin supply is evidence of people’s faith in Bitcoin’s future. The Glassnode data cited by Anthony Pompliano reveals that a considerable number of people are holding onto their Bitcoins for an extended period, which could impact the Bitcoin market’s liquidity and mining rewards. However, the expected rise in Bitcoin’s value in the future makes it a popular investment choice among people. Nonetheless, Bitcoin investors must ensure that they keep track of their investments and are aware of the implications that unmovable Bitcoin supply carries for the Bitcoin market.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/04/10/unmovable-bitcoin-supply-reaches-record-high-in-2021-a-detailed-analysis/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.