The cumulative sum in inactive bitcoin addresses exceeded 12.58 million BTC, with a value of approximately $ 100 billion at the current price. It indicates that most investors remain strong despite volatility in the market.
It also shows that amid one of the steepest drops in recent history from $ 13 to $ 900, most investors held onto Bitcoin, such as noted a researcher known as Rhythm.
In the short term, bitcoin price movement is likely to be influenced by trends in the margin trading market through platforms such as BitMEX and Binance Futures.
Optimistic indicator for bitcoin
Often times, long or short squeezes cause significant price movement to the downside or upward, creating great volatility in the crypto market.
However, in the long run, macro and fundamental factors will determine bitcoin's path. The fundamentals for the dominant cryptocurrency are considered metrics such as the hashrate, user activity, and declining supply or shortage.
The lack of outflow from most BTC addresses adds to the optimistic macro outlook on bitcoin. It specifically shows that at least more than half of all BTC holders are investing with a long-term investment thesis.
The idea of investing in BTC in the long term
In his famous essay entitled «The case for a small allocation to Bitcoin», Xapo CEO Wences Casares said in March 2019 that believes that BTC could be worth up to $ 1 million in the next decade.
“My preferred way of guessing how the price of Bitcoin might evolve is much more prosaic. Over time, I have noticed that the price of Bitcoin fluctuates around $ 7 x how many people own bitcoins. So if that constant holds and if 000 billion people ever own Bitcoin, it would be worth $ 3 trillion or $ 21 million per Bitcoin. "
Bitcoin should see an exponential increase in adoption in the next few years and show a similar trend to gold in evolving towards a suitable store of value.
The large number of investors holding BTC through wild volatility and significant corrections with a long-term investment thesis suggest that most investors believe that BTC may become a significant asset in the next few years.
