Bitcoin is Actively Switching From a Medium of Exchange to a Store of Value

From Bitcoin’s latest updates, Bitcoin has smashed another record once again. The amount of Bitcoin supply which has not been moved or touched has peaked at an all-time high of 21.6%. This amount of Bitcoin hasn’t been moved or touched in five years. Recently, Matt Odell from Tales Of The Crypt podcast tweeted: ” ‘The amount of Bitcoin (BTC) supply that has been untouched (i.e. not transferred) for at least five years recently reached an all-time high. This potentially signals that BTC is increasingly becoming a store of value, as opposed to a medium of exchange.’ coinmetrics.substack.com/p/coin-metrics… “.

Bitcoin News Today – Bitcoin: A Medium of Exchange Or A Store Of Value?

The actual amount of unmoved Bitcoin would be around 3,847859 Bitcoins. According to Matt, citing a research carried out by Coinmetrics, this new feat is an indication that Bitcoin is gradually becoming a store of value and not a medium of exchange. From the research by Coinmetrics, they shared a method of how this statistic was calculated. They were able to calculate the total untouched supply by observing the total active supply.

Bitcoin (BTC) Price Today – BTC / USD

NamePrice24H %
bitcoin
Bitcoin(BTC)
$42,161.00-0.15%

They defined the total active supply as the amount of unique supply that was traded for a minimum of one time in a particular period. However, they discovered that the untouched supply movements could act as an indicator for the movement of Bitcoin prices. The untouched supply gets bigger towards a lower price correlation and becomes smaller towards a higher price correlation; a sign that we are close to the end of the correction and we are aiming for a new bull run.

Bitcoin is currently floating around the $10,000 zone in this week’s trading sessions. Bitcoin broke the $9,500 support up above $10,000 on Thursday. However, the resistance which was set at $10,200 was largely untested due to the reduction in the buying power of the coin. The bears dominated the price putting heavy pressure on it. This saw BTC fall to under $10,000, cutting most of its gains. The bulls found it difficult to push Bitcoin up to $10,000 due to the trendline resistance and 100 Simple Moving Average (SMA) 1–hour chart. A Support has been formed at $9,650 but will only last for a short time. BTC also made a little recovery due to a Bullish support that was tentative, going above $9,700 but is yet to breach the $9,800 resistance barrier.

Bitcoin Price Prediction – Cryptocurrency Market Falls Back to the Red Zone – Cryptocurrency News Update

In a cryptocurrency news update, Bitcoin and altcoins are in the bearish zone after an ephemeral recovery. The crypto market has also gone down the red zone after showing signs of recovery. Bitcoin has gone back to below $10,000 while Altcoins are experiencing loses between 1.5% to 5%. The total market capitalization of all digital assets dropped from $278 billion to $269 billion on Thursday. The total trading volume also fell from $59 billion to $49 billion on Wednesday. These events have reduced Bitcoin’s market share by 64.6%.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.