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The Bitcoin market is undergoing a significant transformation with a record increase in supply held by long-term investors. According to recent data, between July 18 and August 14, 2024, approximately 284,740 BTC were added to the supply held by these investors, representing over $160 billion!
Bitcoin: record growth in long-term holdings
Bitcoin is experiencing record growth in supply held by HODLers. This trend is closely related to the growth of Bitcoin ETFs, which appear to be playing a major role in increasing the long-held supply. This increase suggests that investors prefer to hold their assets rather than sell them, thereby enhancing market stability.
At the same time, the crypto market experienced turbulence with a significant drop in the value of BTC and other digital assets. However, this growth in long-held supply suggests continued resilience and confidence in Bitcoin’s long-term potential. Investors seem to adopt a “HODLing” strategy and prefer to hold their assets despite market fluctuations. These HODLers now control approximately 75% of the circulating supply of Bitcoin.
The data also shows that illiquid entities, i.e. network participants with little or no spending history, continue to accumulate BTC. The number of bitcoins held by these entities increased by more than 90,000 BTC this month. This suggests an easing of selling pressures and continued accumulation, which could further stabilize the market in the long term.
BTC Investors Are Optimistic!
This dynamic contrasts with recent challenges in the crypto market, where tighter regulation and declining investor confidence have driven prices down. Despite these challenges, the growth in long-term supply shows that many investors remain optimistic about the future of Bitcoin.
Record growth in the supply of long-term investors is a positive sign for the Bitcoin market. It reflects renewed confidence and a long-term investment strategy despite the current turbulence in the crypto market. This trend could play a key role in the stabilization and future growth of Bitcoin.
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The world is evolving and adaptation is the best weapon to survive in this wavy universe. Essentially a crypto community manager, I am interested in anything directly or indirectly related to blockchain and its derivatives. To share my experiences and raise awareness of a field that fascinates me, there is nothing better than writing articles that are both informative and relaxing.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.