Bitcoin’s bullish momentum might have hit a roadblock at $30k, but recent data bears testament that the dominant coin continues to command a significant amount of buyer interest. On-chain market intelligence portal Glassnode showed that at the current price level, a record 3.8% of the Bitcoin supply last changed hands.
Analyzing the UTXO element which tracks unspent transaction outputs, it was found that $30,200 is the price at which the most significant number was created. This was greater than the area around the 2022 post-FTX bottom, which is marked by $16,500, suggesting that new owners might be more steadfast.
Therefore, a potential rally shouldn’t be surprising for those who are closely tracking. Approximately 7.77 million bitcoins are currently off the market due to being lost or held by the most resolute investors, an expert wrote. This indicates a significant portion of Bitcoin is in strong hands, which could further drive its value in the future.
Overexposure to Bitcoin can be debilitating
The analyst tweets that Bitcoin owners are showing “Diamond Hands,” a term used for those crypto traders who decide to hold onto their holdings despite the current market conditions. However, he has a word of caution for newbie investors who might use this trend to rush and acquire as much BTC as possible.
It’s not about rushing to acquire as much BTC as possible, but rather about gradual and mindful accumulation. Even if the coin only reaches its ATH again, that’s still a significant return on investment. However, it’s crucial to maintain a humble mindset, assuming it may not break the ATH, to mitigate unnecessary risk. It’s not a necessity to sell all your belongings for Bitcoin.
In the long run, a modest strategy can be more advantageous. Overexposure to BTC can be debilitating; gradually increasing one’s exposure is the better way to prepare for a long-term commitment, he added.
Last week, Bitcoins seized by the US Department of Justice were seen transferring more than 9K BTC worth $300 million from two addresses connected to the Silk Road. The U.S. government sold 9,800 Bitcoin on March 14 and plans to offload an additional 41,500 BTC linked to Silk Road in four batches over the course of a year.