Bitcoin has experienced a bullish trend in 2022, which is reflected in the number of BTC held in storage. Savings or long-term storage of Bitcoin reached a new record in early February as holders anticipate a return to pre-2022 price levels.
49% Of Bitcoin In Long-Term Holdings
According to data from analytics firm Glassnode, 49% of the total Bitcoin supply has stayed in the same wallet for more than two years. This is equivalent to more than 9.45 million Bitcoins or about $220 billion at the time of writing.
Glassnode further explained this trend with a graph that shows the previous peak came in the last quarter of 2020 and the beginning of 2021. The peak ended during the bull market of 2021 because holders began selling as the price of BTC went up.The graph shows a savings peak at the end of 2020 and a subsequent drop. Source: Glassnode/Twitter
After the massive dip in the value of Bitcoin, the indicator dipped and remained stable for most of last year. This means that Bitcoin holders decided to wait for a price increase before moving their assets in the middle of the bear market.
Related Reading: Breaking: Bitcoin Breaks Above $24,000 For The First Time In 2023
However, this trend has changed since December, with a significant increase driven by the consistent rise in the value of Bitcoin. Currently, 49% of Bitcoins have not been moved in two years, and investors are biding their time as we face a new bullish cycle for BTC.
A Bullish Indicator For Bitcoin
The fact that investors have held steadfastly to their coins is a bullish indicator for Bitcoin and shows that there’s still a lot of confidence in the leading cryptocurrency.
Bitcoin is considered the primary market mover, and several institutions hold the asset on their balance sheet. It is also a legal tender in El Salvador and the Central African Republic, with several nations contemplating adding the digital currency to their list of national currencies.
BTC has also been used as a means of donation in the ongoing Russian-Ukraine war, and the latest bullish cycle could create more inroads for adoption. Since the beginning of this year, Bitcoin is up by about 38% and recently hit the $23,000 price mark for the first time since August 2022.
Long-term investors are likely preparing to take profits at higher levels as the price continues to hit new levels. Earlier in January, the amount of Bitcoin addresses in profit hit new levels, with 68% of addresses now in profit.The percentage of addresses in profit in Bitcoin reached its highest level in the last 8 months. Source: Glassnode.
The last time this happened was in mid-2022, when the price of BTC was about $40,000 and in a sharp decline. So there’s a trend that we could be in for an extended bullish run in the coming months.
Related Reading: Bitcoin Derivatives Market Volumes Show Bullish Trend After 2022 Downturn
Nevertheless, some believe that the first quarter of the year will witness a consolidation in the price of BTC before a significant price boost in the second half of the year. It would be interesting to see if this is a temporary price spike or a major bull run.BTC/USD price| Tradingview
Featured image from Unsplash.com/ chart from TradingView and Glassnode.