- Stagnant BTC has hit fifteen million in the last six months.
- Bitcoin stagnation is a significant concern for many people in the cryptocurrency community.
- Institutional investors have made BTC lose its volatility.
Bitcoin hodlers are becoming increasingly popular, with investors looking to hold onto their BTC longer. BTC hodlers are optimistic about the future of Bitcoin and its ability to increase in value over time. The total amount of inactive Bitcoin (BTC) for at least six months has grown to over 15 million, according to an analysis by CryptoMonday.de.
Stagnant BTC supply since 2010 has slowly increased over the years, with a few exceptions in 2018 and late 2021. This indicates that Bitcoin holders are increasing their holdings rather than trading or moving them around.
Jonathan Merry, the CEO of CryptoMonday, commented on the report
The stagnation is due to the constant decline in BTC prices which has lowered people's interest in trading at the moment. Besides, it is possible that the network is not used as much as it once was. This could be due to the increasing use of alternative cryptos like Ethereum.CryptoMonday CEO, Jonathan Merry
Bitcoin Stagnation Is a Significant Concern
Bitcoin stagnation can be a concern for many people in the cryptocurrency community. For one, it signals a lack of liquidity in the market that could cause massive price swings if there is even a slight change in demand. It could also signal that institutional investors are making BTC lose its volatility and turning it into an asset with minimal price movement.
It may be too soon to draw any conclusions from this data. Nevertheless, it is a clear indication that hodlers are increasing their holdings and remaining confident in the future of Bitcoin. As more investors continue to enter the space, we could see an increase in trading activity and liquidity, which would benefit all involved in the network.
Bitcoin’s Stagnation: What Are the Reasons
With the BTC price remaining stagnant at around $17000 for a while, here are some reasons behind the digital currency's stagnation.
It is a possibility that BTC has reached a saturation point, with most of the people interested in buying BTC already having done so. Besides, the current economic conditions are not conducive to BTC growth. People are more interested in saving and investing their money rather than speculating on the future value of BTC.
Besides, the recent influx of institutional investors has caused the market to become more conservative and less volatile.
Whatever the reason, BTC's price is currently in a holding pattern. Yet, the market is simply waiting for a catalyst to increase prices. It will be interesting to see how the situation develops over the next few months.