After a rather gloomy 2022, bitcoin is coming back strong in 2023. Even if the main crypto is far from its all-time high, several measurements suggest that big changes are brewing. Between impressive accumulation rates and a record level of tokens held by long-term investors, find out how BTC maintains its leading position.
Bitcoin (BTC), long-term holders cherish their assets
The crypto market experienced one of its saddest times last year. Between the collapse of Terra Luna, the bear market and the fall of SBF, everything seemed to be converging towards the end of digital assets. However, after a dizzying price drop, the main crypto which was struggling to stabilize is now heading towards new heights.
According to one analysis According to Glassnode, the proportion of circulating supply held for more than a year is at an all-time high. Indeed, despite impressive price performance, long-term bitcoin investors continue to accumulate tokens. Currently, the amount of supply held in crypto wallets is at an ATH of 15.4 million bitcoin (BTC).
This measure could suggest an overall maturation of the bitcoin supply, as investors rely more on holding than spending. In any case, this could also suggest new price peaks in the months to come.
Growing interest in BTC with the resumption of prices
After an insane price level, bitcoin, which had lost nearly 70% of its value, finally crossed the $30,000 mark. Cost basis analysis suggests that this price is an important area of interest for bulls.
Note that the A2VR measure which compares the all-time balance of activity and inactivity of tokens present in wallets has been in a downward trend since June 2021. Moreover, its levels are similar to those of early 2019 and from the end of 2020. And remember, both preceded a significant uptrend in the market.
In addition to being the largest crypto, the enthusiasm around bitcoin is the result of several factors. Among other things, the BTC halving which should take place in April. Additionally, a spot approval of ETFs in the United States appears to be coming to fruition, increasing investor excitement.
However, this does not prevent differences within the community. Indeed, the approval of a Bitcoin Spot ETF is a big victory. But some remain reluctant and approach things with caution.
Bitcoin supply is tightening despite strong price performance since the start of the year. Several measures describe the inactivity of crypto and there is no doubt that BTC investors will not have time to get bored in the months to come.
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