Long-Term Holders Control Over 80% of Bitcoin Supply
Date: 2024-01-03 Author: Dima Zakharov Categories: BLOCKCHAIN
Long-term Bitcoin holders, commonly referred to as "hodlers," have gained unprecedented control over the cryptocurrency market, holding over 80% of the total Bitcoin supply. This revelation comes as a result of a year-long trend in which these investors have been steadily accumulating their holdings.
At the end of 2022, 13.7 million Bitcoins, equivalent to 71.5% of the entire Bitcoin supply, were under the control of long-term investors. Hodlers are identified as addresses that have held BTC for more than 155 days. Analysts at CryptoQuant have underscored this remarkable shift in ownership, emphasizing that long-term investors have significantly increased their reserves.
While short-term traders sporadically sold their BTC holdings throughout the past year, hodlers continued to accumulate, showcasing their confidence in the long-term prospects of Bitcoin.
Recent data indicates that Bitcoin surged to $45,700, with its market capitalization increasing by nearly 7% to $893.393 billion on a weekly basis.
As of January 3rd, the cryptocurrency is still trading near its April 2022 highs, while Ethereum (ETH) approaches the $2,500 mark.
The cryptocurrency market's growth is fueled by anticipation surrounding the potential launch of cryptocurrency exchange-traded funds (ETFs). The U.S. Securities and Exchange Commission (SEC) is currently reviewing multiple ETF applications from firms such as Ark Invest / 21shares, Blackrock, Bitwise, Fidelity, Vaneck, Valkyrie, Invesco, and Wisdomtree.
According to Reuters, the SEC may provide clarity on the legalization of these products in the U.S. stock market as early as Tuesday or Wednesday, significantly impacting the cryptocurrency landscape.
