Understanding the Implications of Unmovable Bitcoin Supply

On April 10th, Morgan Creek founder Anthony Pompliano cited Glassnode data and stated on Twitter that the supply of unmovable Bitcoin in the past two years has reached a record high of 53%. In addition, nearly 29% of circulating Bitcoins have not moved in the past 5 years, while nearly 15% of circulating Bitcoins have not moved in the past decade.

Data: The supply of unmovable Bitcoin in the past two years has reached a record high of 53%

Introduction

On April 10th, Morgan Creek founder Anthony Pompliano tweeted about the record high of unmovable Bitcoin supply. According to Glassnode data, the unmovable supply of Bitcoin had reached 53% in the past two years. Additionally, nearly 29% of circulating Bitcoins had remained inactive for the past 5 years, while almost 15% of the Bitcoin supply had not moved for a decade. In this article, we would explore the implications of Bitcoin’s unmovable supply, the reasons behind it, and the possible effects on the cryptocurrency’s price.

The Concept of Unmovable Bitcoin

Unmovable Bitcoin is the cryptocurrency that has not been moved or transacted within a specified period, usually ranging from a year to a decade. The supply of unmovable Bitcoin, as indicated by the Glassnode data, reveals that a significant amount of the cryptocurrency is being held by long-term investors or Hodlers. These investors have either lost access to their Bitcoin wallets or are holding the cryptocurrency as a long-term investment.

Reasons for Unmovable Bitcoin

One of the reasons for the high percentage of unmovable Bitcoin is the possibility of investors holding the cryptocurrency as a store of value. Bitcoin’s finite supply, scarcity, and decentralization make it a viable store of value, just like gold. Therefore, many investors hold Bitcoin as a hedge against inflation, economic uncertainty, and the devaluation of fiat currencies.
Another reason for the high percentage of unmoved Bitcoin is the speculative nature of the cryptocurrency market. Many traders hold Bitcoin as a speculative investment, hoping to sell off their holdings when the price rises. These traders rarely move their Bitcoin unless there is a significant shift in the market conditions.

Implications on Bitcoin Price

One of the implications of unmovable Bitcoin supply is that it reduces the circulating supply of the cryptocurrency, leading to an increase in scarcity. This scarcity could potentially drive up the price of Bitcoin, as more investors seek to buy the cryptocurrency. Moreover, the increasing number of long-term holders could lead to an increase in demand for Bitcoin, leading to a rise in price.
On the other hand, the high percentage of unmovable Bitcoin also indicates that the market lacks liquidity. If too many traders or investors decide to sell their holdings at the same time, it could lead to a selloff and a drop in the cryptocurrency’s price. Therefore, a high percentage of unmovable Bitcoin both creates scarcity and increases the risk of market volatility.

Conclusion

In conclusion, the high percentage of unmovable Bitcoin supply has implications for the cryptocurrency’s price, market liquidity, and investor sentiment. While the increase in scarcity due to long-term hodlers could drive up the price, the lack of liquidity could also increase the risk of market selloffs. Ultimately, it is crucial for traders and investors to carefully consider the unmovable supply of Bitcoin and its possible effects on the cryptocurrency’s price movements.

FAQs

1. What is unmovable Bitcoin supply?
Unmovable Bitcoin supply is the cryptocurrency that has not been moved or transacted within a specified period, usually ranging from a year to a decade.
2. Why is there a high percentage of unmovable Bitcoin?
One reason is the possibility of investors holding the cryptocurrency as a store of value, while another reason is the speculative nature of the cryptocurrency market.
3. What are the implications of unmovable Bitcoin supply on the price of Bitcoin?
Unmovable Bitcoin supply can increase the scarcity of the cryptocurrency, which could drive up the price. However, it also reduces liquidity and increases the risk of market volatility.