On-chain Data Reveals Bitcoin Moving To Illiquid Wallets; Holders “Not Selling”
Glassnode data reveals intriguing trends in the Bitcoin market, with the illiquid supply of BTC continuing to expand and Bitcoin dominance on the rise. These developments suggest a strong inclination towards HODLing and a shifting of capital from altcoins to major cryptocurrencies.
BTC HODLers Multiply
According to Glassnode, the illiquid supply of Bitcoin is steadily increasing at a rate of +119K BTC per month. This indicates that coins are increasingly accumulating in wallets with minimal transaction history, reinforcing the notion that HODLing remains the prevailing market dynamic.
This trend suggests that a significant portion of BTC holders are choosing to retain their coins rather than actively trading or selling them.
In parallel, Bitcoin dominance has been climbing, currently standing at 47.6%, representing a year-to-date increase of 7.6%. This upward trajectory indicates a consistent rotation of capital from altcoins to major cryptocurrencies.
As investors seek liquidity and stability, they are favoring the most established and liquid crypto asset, Bitcoin. This phenomenon highlights the growing preference for the market leader and the continued consolidation of capital in Bitcoin.
Bitcoin Price Action
Bitcoin’s price has seen some fluctuations, with a 0.33% increase in the past hour. However, it has experienced a 4.41% decline over the past 24 hours, dropping below $25K for the first time in 3 months is true.
BTC couldn’t stay in a positive zone after the Fed’s interest rate decision and fell below the $25,500, a new weekly low. This comes in when the Federal Reserve pauses rate hikes for the first time in the last 15 months.
Read CoinGape’s story on crypto market sell off today, where Ethereum and XRP turned out to be one of the biggest losers in the ongoing sell-off.
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