Only 27% of Bitcoin Moved in 2020, Strong Hands?

A recent new data shows that a minimal number of market participants significantly drove Bitcoin’s price movements in 2020.

This condition may explain why the crypto has been hovering between $9,000 and $10,000 for more than six weeks. Given the ongoing sideways trading of Bitcoin, this means that only 27% of the market has moved in the past six months.

As per an analytics firm, only 27% of BTC offerings have moved by 2020, meaning that the remaining 73% have gone unused, with active traders using margin futures and options as a source of volatility.

Several weeks of consolidation in Bitcoin have dealt a blow to investor sentiment, leading many to predict that the cryptocurrency will soon collapse and begin a new downward trend. The data shows that the benchmark cryptocurrency’s underlying health is starting to grow, potentially opening the door for it to look further up in the coming weeks and months.

After the first halving event back in 2012, the Prime Token increased from $12 to $1,000 in the 12 months following the first halving, and then rose again to over $2,500 in 2014. On such halved events, the rewards for each sponsored block are halved, with a maximum bonus of $5,200 for the first block and $3,300 for each subsequent block.

The cryptocurrency has moved slowly toward bull territory in recent months. Several factors are supporting this notion, including a $10,500 triple spike that is currently in play and that it has set itself. One indicator shows that Bitcoin has acquired a growing undercurrent of health during this consolidation phase, suggesting that its next move may favor buyers.

He also said Bitcoin’s stable position in the green zone was a good sign for its medium-term prospects. Only 27% of Bitcoin is in circulation, with the rest dormant.

Subsequently means that a small percentage of market participants drive the market. At the same time, only a fraction of this 27% is likely to be operated by active trading. The rest is either dormant or in a state of near-zero activity, according to the US Federal Reserve.

To this the CTO of Glassnode Rafael Schiltze-Kraft tweeted that:

“Only 27% of the circulating #Bitcoin supply has moved in 2020. That’s right, 73% of all bitcoins in existence (~13.5M $BTC) has been dormant since 2019 and before.”

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