For a while now, the cryptocurrency market has been rather bearish. However, Bitcoin’s stability during the stock market’s plummet has been encouraging leaving Investors to hold rather than sell-off their Bitcoins. In fact, stats have shown that investors aren’t just holding on to the Bitcoins they have but are buying more and adding to their portfolio. Statistics have shown that almost 10% of all the Bitcoin wallets in the world have been dormant within the last 12 months. This makes up for about 15.8 million wallets out of all the wallets in the world including the seventh largest Bitcoin wallet in the world.
How Has Bitcoin Performed This Year?
The Bitcoin to USD trading pair has had a rough few months falling by more than 50% from the beginning of the year. The good news is that the price volatility has reduced in recent months as the leading cryptocurrency per market capitalization has been hovering above $6,500. The drop in volatility has given investors the confidence to hold on preventing a sell-off which would, in turn, cause a spike in volatility. According to the founder of Morgan Creek Digital, Anthony Pompliano:
“Holding on to Bitcoin as a store of value is becoming more popular in recent times. I believe people are beginning to appreciate the cryptocurrency as a store of value rather than a quick profit venture alone”.
The 100 wallets that have been dominant for the last year hold about 9.4% of Bitcoins. There hasn’t been any buying and selling activities in these wallets for this period. The number of Bitcoins in this wallets is about 350,000. One of the wallets that has been dormant since the year 2011 holds up to 80,000 Bitcoins accounting for up to 0.46% of the total Bitcoins in population. It is also the seventh largest Bitcoin wallet in the world.
In Pompliano’s opinion, the headlines are focused on the stock market so there is less attention on Bitcoin. In his words:
“The less media hype Bitcoin gets, the less attention people pay to their Bitcoin holdings. This automatically means the portfolio records less activity and Bitcoin serves as a store of value”.
Bitcoin (BTC) Price Analysis
At the time of writing, Bitcoin was trading at $6,325.33. This shows that it was down by -0.16% against the USD. The trading volume over a 24 hour period is $3,773,571,057 while the market capitalization is $109,753,039,944.