In a recent tweet, John Deaton, the founder of Crypto-Law.us, highlighted a potentially positive sign for Bitcoin, the largest cryptocurrency by market capitalization. Deaton’s observation ignited a discussion among crypto enthusiasts, drawing attention to the resilience of Bitcoin’s investors.
According to Deaton’s tweet, nearly 80% of BTC has not moved, indicating that holders are refraining from selling their assets. This observation raises curiosity about how this percentage might fluctuate as Bitcoin’s price reaches milestones such as $50,000 and $75,000.
Responding to the tweet, one individual noted that during Bitcoin’s previous peak at $69,000, approximately 70% of investors endured the subsequent decline all the way down to $15,000 and are still holding their positions.
It showcases the dedication of Bitcoin “maxis,” who stick to their beliefs and retain their holdings despite significant price fluctuations. Nevertheless, it is worth considering the threshold at which these committed holders would be enticed to sell, whether it be $250,000, $500,000, or even $1 million.
Another participant in the discussion highlighted the issue of lost keys and coins. They suggested that a substantial portion of the stagnant BTC supply may be attributed to lost coins, estimating that over 20% of the current BTC supply is irretrievably lost. They cited Prime Trust as a recent example of this phenomenon.
On a different note, some participants expressed a counter-narrative emphasizing retail BTC investors’ resilience against potential pressure from institutional investors. They proposed that if 80% of the BTC supply remains stagnant during this bear trend, it serves as a defiant gesture to the elite.
Alternatively, capitulation—a situation where investors surrender their positions—may not necessarily occur at the market bottom but rather before a significant price surge.
Bitcoin Illiquid Supply Change Reflects Continued HODLing
Meanwhile, Glassnode, a prominent on-chain data provider, tweeted that the Bitcoin Illiquid Supply Change remains exceptionally elevated, nearing cycle highs.
This data suggests that the trend of holding onto Bitcoin (HODLing) remains prevalent as coins continue flowing into wallets with little to no spending history. The current rate stands at an impressive +194.5K BTC per month.
These observations have underscored Bitcoin’s resilience and the unwavering commitment of its holders. Despite market fluctuations and differing opinions on price targets, it is clear that a significant portion of BTC investors remains steadfast in their belief in the long-term potential of the cryptocurrency.
Nevertheless, the coming weeks will undoubtedly be of great interest as Bitcoin’s price trajectory unfolds and the resilience of its holders is put to the test.
Related Reading | KuCoin Strengthens User Policy with Mandatory KYC: A Step Towards Enhanced Security
