Long Term Investors Hold On To Bitcoins Despite Bearish TrendsSeptember 18, 2018
Long-term investors continue to trust in Bitcoin. There was no outgoing movement in nearly 42% of the Bitcoins held in the wallets. The balances in these wallets are 200 coins and upwards. They are on an average worth over $1mn at any point in time. Over the past 11 months the price of Bitcoin went down the $5K mark. Despite this, 1/3 of the Bitcoins continue to sit in the wallets.
More than 200 BTC stayed back in the investment wallets until the market saw $20K BTC. About 27% of the Bitcoin Wallets have continued to add coins to their stash. This is indicative of the resolve and trust of the cryptocurrency believers.
Of note, more than half of the circulating supply of Bitcoins is controlled by cryptocurrency whales. About 42% of these whales did not sell it during the peak times of the cryptomania.
Diar a blockchain research unit has to say that less than 1% of the wallet addresses control the $100 billion in Bitcoin. These wallet addresses that control the circulating supply have balances that exceed 200 BTC, which is nearly 1.25 million. Right from receiving these coins, these whales controlling the market have never moved it out of their wallets.
Diar has stated that some of these might be the reserves of the cryptocurrency exchanges. Regardless, of the reason for the retention, it is impressive that these coins have not left the wallet despite the dramatic BTC fluctuation.
Most notably, BTC exceeded $20,000 in January, for which many blamed market manipulators for the hysteria that followed.
Diar suggests that some of the sleeping Bitcoin could actually be accidentally locked up due to owners losing private keys. Either that, or there are some rich cryptocurrency believers out there with lots of patience.
Professor Griffin in the past remarked, “We were all victims in what could be a massive price manipulation scam.” Of note, professor Griffin, has been smart in spotting frauds in the financial markets.” The University of Texas newspaper once published “Bitcoin’s price may have been artificially inflated in its run-up last December to nearly $20,000 per coin.”
The Diar Bitcoin Distribution Estimates is at 21Mn BTC. Long term investment is about 25%, investment and speculative coins at 17%, lost and illiquid at 30%, exchange wallets at 15%, and transactional 13%.
Though about 25% of the Bitcoins in the wallets were those that were created before the price touched it’s all time high, they have not made any outgoing transactions; however, the current balances indicate that new wallets might have been added with Bitcoins. The bears continue to be in the driving seat and the UTC closes below the trendline support. Currently it is at $6,214.