Data from on-chain analytics firm Glassnode shows that despite price volatility, rising inflation, and geopolitical tensions, the majority of the BTC supply has not left its wallet since the start of the year. It signifies the rising appeal of Bitcoin among institutional and retail investors, with nobody interested in selling it.
Glassnode tweeted on Monday that the Bitcoin Illiquid Supply Shock Ratio (ISSR), which represents the coins held in wallets with little to no history of spending, has ticked significantly higher this week.
Bitcoin Interest Rises Among Investors
The Bitcoin Illiquid Supply Shock Ratio, first developed by on-chain analyst Will Clemente, has been moving significantly higher since the start of the year. And, this week, the ratio jumps even higher. The illiquid BTC supply represents coins held in wallets with little to no history of spending. It is now 3.2 times larger than Liquid and Highly Liquid supply combined.
The data is important as it implies that long-term hodlers are patiently hodling because they know what’s likely coming soon. Even Elon Musk says he is not planning to sell his Bitcoin, Ethereum, and Doge despite rising inflation. Musk’s tweet pushed crypto prices slightly higher on Monday, with Bitcoin rising nearly 2% to above $39,000.
Moreover, as per the historic price movement, a downtrend on two previous occasions in 2016 and 2020 followed and preceded a major bounceback in Bitcoin price action.
However, Other factors must also be considered, such as EU ministers are expected to vote on approving two versions of the MiCA bill, one with the POW ban and one without it. The high energy cost and carbon footprint of mining POW tokens is a sticking point for the EU parliament.
Meanwhile, over the weekend, a comparison of top assets by market cap indicates that Bitcoin, XRP, and Binance Coin are showing signs of traders expecting price rises. However, trader sentiment is negative on Polkadot, as per a tweet from Santiment, a financial market data and content platform.
