Bitcoin investors content to hold crypto, only 12.9% supply on exchanges: report

Bitcoin investors appear to be just happy to hold onto the cryptocurrency, believing that its price will continue to skyrocket more than altcoins. In its recent report, research firm Glassnode revealed that of the total Bitcoin supply, only 12.9% have been circulating on various crypto exchanges since August of this year. The total number of Bitcoin crypto tokens currently in stock is over 18.8 million, making it 90% of the 21 million that were pre-decided to be created by the anonymous Bitcoin creator Satoshi Nakamoto.

The current price of Bitcoin, which is the world’s oldest cryptocurrency, was hovering around its all-time high of $ 70,286 (around Rs. 52.3 lakh), according to the Gadgets 360 tracker at the time of writing.

Glassnode report says that as Bitcoin hit its recent all-time high, the supply held by “long-term holders” (LTH) reached the “HODL peak.” According to CoinSutra, “HODL” was originally a typo that has now grown into a humorous backronym “Hold on for dear life”.

“This is the time when they collectively owned a local maximum of the entire coin supply, 81.5% in this case. Since then, LTHs have spent 0.73% of the coin supply in liquid circulation, ”the report says.

Basically, the analysis indicates that if investors hadn’t just held onto their Bitcoin assets, they would have kept more tokens on the exchanges, ready to sell, but that’s apparently not the case right now.

“Although it sits just below all-time highs, on-chain activity remains only slightly above bear market levels,” notes Glassnode.

In another observation, the report states that the rate at which new wallets send or receive Bitcoin has also increased in recent times.

As of November 9, 516,914 new addresses participated in a transaction recording a massive 72% increase in the number of newcomers sending or receiving Bitcoin in early August.

Over the past thirteen years since the inception of Bitcoin in 2009, cryptocurrency has grown to become the most valuable cryptocurrency in the world.

In 2009, each Bitcoin token was priced at $ 0.0008 (around Rs. 0.060), a far cry from today’s prices.

According to CoinMarketCap, Bitcoin’s live market capitalization is currently $ 1,244,763,098,851 (approximately Rs. 92 68,506 crore).

Bitcoin adoption is also increasing at a noticeable rate.

In September, El Salvador, a country in Central America, became the first in the world to make Bitcoin legal tender.

In the United States, the city of Miami has launched a native Bitcoin-based coin called “MiamiCoin” and plans to convert the proceeds into Bitcoin for its residents.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is unregulated digital currency, not legal tender and subject to market risk. The information provided in the article is not intended to be and does not constitute financial advice, business advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV will not be responsible for any loss resulting from any investment based on a perceived recommendation, forecast or any other information contained in the article.

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