Bitcoin is a highly volatile investment. We all know that, but people who are afraid of losing their investments scream murder at the slightest change. There are those who remain calm and invested, and there are those who do not. And their perseverance is paying off.
On a larger scale, now is the time for Bitcoin HODLers.
Bitcoin at its finest…
… for those who plan to invest for the long term.
This week, total supply on exchanges fell to 2.45 million BTC, the lowest level since August 2018. This is the result of the market’s consistent accumulation since March 2020.
This macro-accumulation progressed through the rallies of 2020 and 2021 to where it is now.
This consistent buying of Bitcoin has resulted in outflows dominating exchanges. Inflows were seen around the local top in July 2020 and again during the May crash, but then reversed to indicate buying.
As a result, between July and September, an average of 80k to 100k BTC were purchased.
This type of pattern can be expected only from a specific group of investors who are largely unaffected by micro-fluctuations. Long-term investors have steadily increased their holdings.
And their holdings have now reached an all-time high of 80.5 percent of total circulating supply. As a result of profit-taking, some sell-offs were seen around April. This contributed to a drop to a low peak of 67.7 percent this year.
However, it also highlighted LTH’s bullishness, as it fell to 58 percent in 2018 and around 54 – 56 percent in 2014.
But what is the source of this optimism?
This year’s bullishness among long-term investors can be attributed to two factors:
Bitcoin’s new all-time high on the charts Bitcoin’s overall popularity has grown.
The growth observed outside of Bitcoin itself, particularly in Lightning Network stats, demonstrates the increase in adoption. El Salvador’s adoption of Bitcoin may have been a catalyst, but the Lightning Network has seen greater participation for a long time.
Since January of this year, network capacity has increased by 170 percent, with a 22 percent increase this month alone, reaching 2,904 BTC.
This macrobullishness is likely to continue as Bitcoin’s adoption grows by the day. People are still waiting for the king coin to return to its ATH levels.