A popular crypto analyst called “Documenting Bitcoin” released fresh data on Tuesday showing that half of all Bitcoin (meaning 9.64 million BTC worth $86.4 billion) have not been moved for the last two years.
At the time of writing, there is 19.28 million BTC in circulation, and the number of untouched coins represents about 50% of the current supply. Unmoved BTC is determined by how much of the cryptocurrency has remained illiquid inside its holders’ wallets over a given period compared to its total supply.
Institutional Demands Driving Up BTC Price
The data shows that 50% of the Bitcoin in circulation has remained intact within its wallet for two years. This coincides with a period in which the digital asset saw increased adoption by institutional investors. Institutions have been purchasing large amounts of Bitcoin and holding it for long-term purposes without the intent to sell. This has helped to increase the valuation of the cryptocurrency.
Though the Bitcoin price hit its all-time high of $69,000 in November 2021, most investors have opted to hold the coin for the last two years despite price swings. Institutions continue to see the long-term potential of the cryptocurrency and have been increasing their allocations despite the sector going through a severe bear market.
Data released last November showed that 62% of institutions invested in cryptocurrency had increased their holdings over the previous 12 months. The survey indicated that only 12% of institutional investors had reduced their crypto exposure, meaning that most institutions have remained bullish on cryptocurrencies long-term despite prices dropping. Of course, the crypto winter presented an opportunity for long-term users to buy the dip.
Half of Bitcoin has remained unmoved for two years, implying that the virtual asset is becoming a store of value, a digital version of gold used by people to hedge against inflation. This is an essential development for the Bitcoin ecosystem as it signals a growing level of long-term confidence and stability among investors.
Bitcoin has a maximum of 21 million BTC. This fixed supply supports an ever-rising demand that continues to operate as a long-term bullish fundamental for the cryptocurrency.
Bitcoin Price Action
Looking at the price chart below, Bitcoin was trading at around $50,000 in December 2021. However, at the beginning of 2022, things started falling apart. In January last year, its price fell below $42,000.
In May, the crypto was trading at about $39,000, with a sudden plunge to $29,000. June was when the crypto asset fluctuated its price between $19,000 and $20,000. November was when the BTC price dropped to the $16,000 level, and since then, the crypto has managed to rally on the back of better macroeconomic ties.
So far, Bitcoin has soared its value by about 30% this year. The cryptocurrency currently trades at $23,011, up 0.43% in the last 24 hours, with a trading volume of $24 billion. The digital asset is ranked the most prominent cryptocurrency, with a market cap of $443 billion, according to Coinmarketcap.