Bitcoin [BTC] demonstrated its resilience by maintaining a position around the $37,000 mark, with bulls steadfastly holding their ground and sustaining the cryptocurrency’s dominance. The current price action signals BTC’s proximity to 18-month highs, providing a glimpse of ongoing momentum in the bull market. Despite a slightly slower pace of upside movement compared to previous weeks, BTC/USD has recorded a 7% increase month-to-date.
The price trajectory of Bitcoin is traditionally influenced by macroeconomic data, which has the potential to introduce sudden volatility. However, the underlying network fundamentals for Bitcoin will remain robust in 2023.
A noteworthy aspect contributing to BTC’s strength is the substantial amount of hodling, with over 70% of the circulating Bitcoin supply remaining inactive for at least a year. According to data from Glassnode, over 13 million BTCs, equivalent to $388 billion, have been dormant on-chain for a minimum of twelve months. This figure represents 68.5% of the circulating supply of 19.5 million BTCs.
Analysts from the cryptocurrency exchange Bitfinex suggest that this prolonged inactivity indicates a prevailing inclination among holders to retain Bitcoin for long-term gains. It is essential to note that some of the inactive supply might include lost coins. The recorded level of 69.2% two weeks ago marked an all-time high in this trend.
Examining the ratio between long- and short-term holder supply, it becomes evident that the metric has surged to new highs since July 2023. This signifies a significant divergence between dormant and actively circulating supply, emphasizing a remarkable level of tightness in the market.
Bitcoin Exhibits A Resilient Bull Cycle
Experts are keeping a close eye on Bitcoin’s four-year bull cycle, and according to one expert, the cycle is proceeding as anticipated. Mags, a notable authority in the field, recently highlighted that the current status of BTC is in accordance with initial expectations, dispelling any previous concerns. Refer to TronWeekly’s report for a detailed analysis.
As Bitcoin maintains a strong position and hodling becomes increasingly prevalent, the cryptocurrency market experiences a notable shift in dynamics. The sustained commitment to holding BTC for an extended period contributes to the overall scarcity of the cryptocurrency, further influencing its value and reinforcing its status as a long-term investment.