$100 Billion Of BTC Hasn’t Moved In Over 1 Year: Report

The number of dormant Bitcoin addresses is continuously increasing and as the latest Bitcoin price news show, this does not affect the latest price movement of the dominant coin. However, knowing that even $100 billion of BTC hasn’t moved in over one year, we can see that most investors are holding strong despite the volatility in the market.

According to some analysts, this may be the real reason why BTC is failing to break out from the four-digit zone and go above $10,000. This also demonstrates that amidst one of the steepest falls in recent history (where BTC fell from $13,900 to $6,410) the majority of investors were holding onto Bitcoin as the crypto analyst Rhythm tweeted.

12,580,00 bitcoin have not moved in over a year.

Even with a 70% increase in price during that time, those millions of bitcoin were not moved, sold or likely traded.

Hodlers of last resort are insane. pic.twitter.com/edVDOoJkKK

— Rhythm (@Rhythmtrader) January 6, 2020

In the short term, the price movement of Bitcoin is very likely to be sweeped by trends in the margin trading market through platforms such as BitMEX and Binance Futures.

Very often, short or long squeezes trigger a significant price movement to either the downside or the upside, creating a large volatility in the crypto market. However, the long term shows that macro and fundamental factors will determine the pathway of Bitcoin. The $100 billion of BTC that have not been moved are a clear indicator that BTC is standing still when it comes to volatility.

Fundamentals for the dominant cryptocurrency are considered to be metrics including the hashrate, user activity and the declining supply or scarcity.

In one of the most popular essays named “The case for a small allocation to Bitcoin” the CEO of Xapo Wences Casares in March 2019 said that he believes BTC could be worth as much as $1 million in the next decade.

“My preferred way of guessing how the price of Bitcoin may evolve is much more prosaic. I have noticed over time that the price of Bitcoin fluctuates around ~ $7,000 x how many people own bitcoins. So if that constant maintains and if 3 billion people ever own Bitcoin it would be worth ~ $21 trillion (~ $7,000 x 3 billion) or $1 million per Bitcoin,” he wrote.

However, the $100 billion of BTC that is held does not go in line with this expectation. For a price breakout soon, Bitcoin would have to see an exponential increase in adoption over the next several years and the cryptocurrency news need to show a similar trend to gold in evolving as a proper store of value.