Key Points:
- Bitcoin is flowing into wallets controlled by long-term investors at the fastest rate in six months.
- Illiquid wallets now hold 15,207,843 BTC, up by 215,000 BTC in the past four weeks alone.
- Investors remain confident of bitcoin’s price prospects despite continued macroeconomic uncertainty and heightened regulatory risks.
According to Glassnode’s Bitcoin illiquid supply change metric, the number of bitcoins held by illiquid wallets has been increasing rapidly over the past few weeks.
These wallets belong to investors who have very little history of spending their BTCs, indicating that they are long-term investors who are hoarding their coins.
As of Monday, there were 147,351.58 BTC ($3.9 billion) held by illiquid wallets, the highest since December 19. The total number of bitcoins held by illiquid entities has reached a record high of 15,207,843 BTC, with an increase of 215,000 BTC in the past four weeks alone.
This data suggests that investors are confident in bitcoin’s long-term prospects, despite the economic uncertainty and regulatory risks. In fact, the flow of bitcoins into illiquid wallets suggests that there is a gradual and steady accumulation taking place. Glassnode analyst James Check notes that the market is “in a period of quiet accumulation, which suggests an undercurrent of demand, despite the regulatory headwinds of late.”
Last week, the U.S. Federal Reserve kept interest rates unchanged, which is partly responsible for last year’s crypto market decline. However, the bank ruled out rate cuts this year while keeping the doors open for more increases if required.
Earlier this month, the U.S. Securities and Exchange Commission filed lawsuits against digital assets exchanges Coinbase and Binance, accusing them of offering a number of alternative cryptocurrencies as unregistered securities. This caused a rotation of money out of altcoins and into BTC.
According to technical charts, as long as crucial support at $25,200 is held intact, there is a potential for a bull revival and a rise in bitcoin prices.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Coincu News
Source: https://news.coincu.com/196563-bitcoin-illiquidity-indicates-investor/