Bitcoin holders are not planning to sell the digital currency even at a price level of $55,000. According to the latest data published by on-chain crypto market analysis firm Glassnode, around 45.3% of Bitcoin supply has not moved in the last 2 years, the highest level in 3 months.
Glassnode data indicate that long-term Bitcoin holders who bought the cryptocurrency during 2018 are planning to hold the digital currency for massive gains. As of wiring, the world’s most valuable cryptocurrency is trading near $55,300 with a market cap of over $1 trillion.
BTC’s recent consolidation at around $55,000 shows that the digital currency is resisting selling pressure despite a dip in volatility. Tesla announced last week that the company will accept Bitcoin as a mode of payment for its products including Model S, Model 3, Model X, Model Y, Cybertruck, and various other products.
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Finance Magnates reported last week that the cryptocurrency exchange Coinbase saw massive Bitcoin outflows amid price volatility in BTC. Approximately $1 billion worth of BTC left Coinbase within 24 hours.
Institutional Demand and Bitcoin
The price of Bitcoin has surged nearly 90% in the last 12 weeks due to significant institutional demand for the world’s largest cryptocurrency. “If we add all of the potential demand relative to the limited supply, we come up with incredible numbers over the long term. We have just begun. One trillion dollars is nothing compared to where this ultimately will be.” Cathie Wood, Founder and CEO of Ark Invest said about BTC recently.
Institutional demand for Bitcoin is currently driving the price of BTC but the latest dip in the supply of digital currency is making it difficult for organizations to accumulate the cryptocurrency. In addition to Bitcoin whales, crypto miners are also not selling their BTC assets as the total amount of Bitcoin transferred from all crypto wallets of miners has dropped to the lowest level since December 2020.