Bitcoin edged up 2% for the week. Despite continuing to struggle below key levels, a notable trend has emerged as Bitcoin is viewed as a buy-and-hold asset.
according to Report Astonishingly, 13.27 million bitcoins, or 68.45% of the total supply of 19.4 million bitcoins, have been dormant for over a year, according to the latest update from the Bitfinex exchange. A large amount of Bitcoin that has been inactive for a long time shows an increasing trend of holding investors.
Additionally, another key metric supporting this trend is that the number of addresses belonging to “Wholecoiners” — meaning addresses with at least 1 BTC — has surpassed 1 million. Wholecoiners form an important part of the Bitcoin community and further illustrate the shift towards long-term investment strategies.
BTC supply over 1 year | Source: Glassnode
Data analysis shows that these investors have been steadily increasing their Bitcoin holdings since mid-2021, and the number of addresses holding 1 BTC has been on the rise since then. Even during the market downturn in 2022, the group added 20, solidifying their hodl commitment.
Bitfinex reiterated its previous analysis suggesting that Bitcoin may be in the early stages of a bull market. Despite the current poor market conditions, long-term holders of Bitcoin remain true to their convictions. Additionally, the ecosystem is expected to gain momentum due to increased transaction fees, which benefits miners.
The trend of investors buying and holding combined with the rise of Wholecoiners paints a resilient picture of the Bitcoin ecosystem. Despite the challenges facing the market, these developments represent a shift in attitudes toward owning Bitcoin and indicate growing confidence in BTC’s long-term potential.
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