On-chain Data Reveals Bitcoin Moving To Illiquid Wallets; Holders “Not Selling”

Coingapestaff
June 15, 2023
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Bitcoin News: Bitcoin Core 28.0 Launches With Major Improvements

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.

Advertisement
Advertisement

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.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.