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- 0.3% short of the new all-time high, Sixty-three per cent of the total Bitcoin supply continued to remain illiquid for the last year.
- According to the simple law of supply and demand, the rise in coins unspent might lead to the progressive price increase of an asset. However, illiquid supply might be considered negative in terms of the traditional economy.
- The flagship cryptocurrency gains momentum as it was able to regain over 20% of its value in less than a month due to the inflow into the cryptocurrency.
Out of the total Bitcoin, Sixty-three percent continue to stay illiquid for the last year, which is 0.3% less than the new all-time high. Besides the long-term-held supply increase, it also signifies “weak hands” selling their holdings quite diligently in comparison to investors who bought Bitcoin a long time ago.
The data by Will Clemente reveals that the supply, which hasn’t shifted in over a year now, is rising, indicating the fact that more investors opt to hold over active speculation and trading.
How Can long-term holding be a good thing for the market?
An increase in illiquid supply might not be considered positive in terms of the conventional economy; the surge in unspent coins might lead to the progressive price rise of an asset, as per the basic law of supply and demand.
While demand remains the same for holding, trading and using, the supply is less; the asset price is more likely to increase over time. However, in the case of Bitcoin, the holders and the market are vulnerable to limitations, including unpleasant investment conditions and regulations.
The Flagship Cryptocurrency Picks Up Momentum
In the aftermath of the four-month correction on the market, the flagship currency has finally moved out of the long-term range in which it was oscillating for approximately 55 days from $45,000 to $37,000.
The leading cryptocurrency by market cap was able to regain more than 20% of its value in the span of less than a month because of the inflow into the cryptocurrency market.
At the time of writing, the price of Bitcoin was $46,083.5; it floats above every short and mid-term resistance earlier existing on the chart. Along with the positive price performance, technical indicators on the chart are also moving in the price direction.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
