Bitcoin is a deflationary asset with fixed supply, unlike Ethereum, whose supply increases or decreases annually depending on network usage. There will only be 21 million Bitcoins in circulation, and a decent portion beyond 4 million is non-refundable.
Fewer and fewer owners want to sell Bitcoin
Now, the latest data He appears That fewer and fewer people want to part with their Bitcoin. According to on-chain data from long and short Bitcoin holder supply cycles, less than 10% of Bitcoin holders were eager to sell as of October 2024. This percentage is much lower than the 26% around mid-2021 and the 26% around mid-2021. . 64% in 2013.
Interestingly, this trend shows that long-term holders, those who bought their coins more than six months ago, and short-term holders, or those who bought their Bitcoin in less than 155 days, are willing to part with their coins. This situation comes even though Bitcoin, like any other crypto asset, is volatile, experiencing sharp price gains or declines over time.
To put this situation in perspective, Bitcoin is down 15% from its all-time high in March 2024. However, it has also risen almost 150% year to date after rising from around $27,000 in October 2023. Bitcoin in 2022 to below $16,000 after rising to nearly $70,000 in November 2021.
The cyclical nature of Bitcoin, given the hard data, does not discourage traders who sell when prices fall, for example. This shift in trend over the years shows that more coin holders have a positive outlook on the coin’s long-term potential and even as a store of value.
Traders who play do not want to get rid of institutions, they are charged
There could be multiple factors behind this trend, but among the most important is institutional participation, especially after the No. 1 spot for Bitcoin ETFs in the US was approved early this year.
according to Soso valueU.S. Bitcoin ETF issuers manage more than $57 billion in BTC. BlackRock controls more than $21.5 billion in user assets, while Grayscale, which is cannibalizing GBTC, has seen more than $20 billion in outflows since launching the derivative product in January.
Meanwhile, Adam Back, CEO of Blockstream, said, He notices That there are no options – both call and put – that have a duration longer than a year. The CEO adds that this is because most options traders are unwilling to sell their calls, because if they did, most of them would be bought out in a heartbeat.
Featured image from Canva, chart from TradingView