Bitcoin News Today – Headlines for June 20

Bitcoin Trading
  • Bitcoin continues to grow as store of value and digital gold
  • Long-term investors account for more than 11.4 million Bitcoins
  • Bitcoin’s price is supported by the tradeable 3.5 million BTC

Bitcoin News Today – Despite the volatility and numerous bearish sentiments around Bitcoin (BTC), many still see it as a safe haven and digital gold. This is evident by the vast number of investors that are holding the digital currency for the long-term. Data recently revealed that long-term investors are holding more than 11.4 million BTCs, and this has diminished the tradeable supply of the digital currency to only 20 percent.

Over 11.4 Million Bitcoin Is Held for Long-Term Investment

Data from Chainalysis shows that the majority of BTC is held as a long-term investment, with 60 percent held by licensed custodians. While 11.4 million Bitcoin is locked down for long-term investment, 3.5 million are currently tradeable, 3.7 million BTCs are lost, and 2.4 million BTC are yet to be mined. The firms said that the breakdown of the supply of BTC makes it similar to gold, supporting the status of Bitcoin as digital gold.

Nevertheless, the firm clarified that it is 3.5 million BTC, which is in circulation, that supports the price of the digital currency.

But this digital gold is supported by an active trading market for those who prefer to buy and sell frequently. The 3.5 million Bitcoin used for trading supplies the market, and, in interaction with the level of demand, determines the price.”

Bitcoin (BTC) Price Today – BTC / USD

NamePrice24H %
bitcoin
Bitcoin(BTC)
$0.00-0.15%

According to Chainalysis, long-term investors are those that have never sold over 25 percent of their holdings. The firm said that such users usually HODL their coins for many years.

Retail Traders Account for the Majority of BTC Transactions

The analysis of the company did not stop there; it went further into the trading segment. The firm found out that while retail traders carry out 96 percent of Bitcoin transactions, long-term investors move the bulk of the volume. Chainalysis said:

Retail traders, whom we categorize as those who deposit less than $10,000 worth of Bitcoin on exchanges at a time, appear to be the large majority, accounting for 96% of all transfers sent to exchanges on an average weekly basis. Professional traders, however, control the liquidity of the market, accounting for 85% of all the USD value of Bitcoin value sent to exchanges.”

According to the firm, the maximum number of weekly traders this year was 340,000. Virtual Asset Service Providers (VASPs) or licensed custodians hold about 60 percent of the whole BTC supply. Many digital currency trading platforms are included in this statistic. Coinbase alone – the largest digital currency trading platform in the US – holds about 1 million Bitcoin.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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