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Bitcoin saw an upward trend in 2022, which is reflected in the amount of btc held in storage. Bitcoin savings or long-term storage reached a new all-time high at the beginning of February as holders expect a return to pre-2022 price levels.
Bitcoin's 49% in long-term investments.
According to data from analytics firm Glassnode, 49% of the total Bitcoin supply has stayed in the same wallet for more than two years. This amounts to over 9.45 million Bitcoin, or approximately $220 billion at the time of writing.
Glassnode also explained this trend using a chart showing the previous high reached in the final quarter of 2020 and early 2021. The peak ended in the 2021 bull market as holders began to sell as the price of secured credit increased.
After the massive plunge into the value of Bitcoin, the indicator fell and remained steady for most of last year. This means that bitcoin holders have decided to wait for an increase in price before moving their assets into the middle of the bearish market.
Related Reading: Breaking: Bitcoin Breaks Above $24,000 For The First Time In 2023
However, this trend has changed since December, with a significant increase driven by Bitcoin's steadily rising value. At the moment, 49% of bitcoins have not been moved in two years, and investors are waiting for their time as we face a new uptrend cycle for btc.
An uptrend for Bitcoin.
The fact that investors have held fast to their coins is an up-and-coming indicator for Bitcoin and shows that there is still a lot of confidence in the leading cryptocurrency.
Bitcoin is regarded as the main engine of the market, and many institutions hold the asset on their balance sheet. It is also legal currency in El Salvador and the Central African Republic, with many countries considering adding digital currency to their national currency lists.
BTC was also used as a donation vehicle in the current Russian-Ukrainian war, and the last bull cycle could create more breakthroughs for adoption. Since the start of this year, Bitcoin is on the rise of about 38% and has recently hit the $23,000 price bar for the first time since August 2022.
Long-term investors are likely to prepare to take profits at levels higher than the price continues to reach new levels. Earlier in January, the amount of Bitcoin addresses in earnings reached new levels, with 68% of addresses now in earnings.
The last time that happened was in the middle of 2022, when the price of the BTC was about $40,000 and it was down significantly. So there is an upward trend going forward.
Related Reading: Bitcoin Derivatives Market Volumes Show Bullish Trend After 2022 Downturn
Nevertheless, some believe that the first quarter of the year will see a strengthening of the price of BTC before a significant increase in prices in the second half of the year. It would be interesting to see whether this is a temporary spike in prices or a significant leap.
Unsplash.com Featured Image/ TradingView & Glassnode Diagram.
