A cryptocurrency markets analyst known as Rhythmtrader on Twitter concluded that more than 60 percent of the aggregated Bitcoin in circulation has remained in wallet for over one year, spotlighting demand among investors. He uploaded the information on December 2.
The data maintained that 11.58 million Bitcoins that represents 64 percent of Bitcoin supply out of the approximately 18.08 million Bitcoins mined, has remained in the same wallet since 2018. It is remarkable that the price of BTC/USD has moved from $3.1k in December 2018 to 2019 highs of $13.8k in six months. It retraced and lost 52 percent to attain $6.5k on November 25.
“Hodlers of last resort are insane.”Rhythmtrader maintained
The data reveals that the percentage of aggregated Bitcoin supply that is dormant has swiftly surged in recent years. This means that the trend did not change when there were buyer and seller markets, signaling a desire for saving the crypto instead of spending, without regard to profitability.
Such action makes BTC look like hard money. That is, a currency whose supply is fixed and emission is scheduled, and cannot be manipulated by any central authority. An economic system that encourages people to spend and borrow while discouraging them from savings needs a currency whose supply can be manipulated.
The summary of Saifedean Ammous in his renowned book entitled “The Bitcoin Standard,” says that consumers see the need for spending money as soon as possible because of loss of value in the future as government and central bank interfere.
However, on the other hand, Bitcoin investors keep exhibiting what is economically known as “low time preference”. That is, they save for the future because they realize the profitabilityattached, instead of spending in the near-term.