The cumulative sum in dormant bitcoin addresses surpassed 12.58 million BTC, worth just about $100 billion at current price. It indicates most investors are holding strong despite volatility in the market.
It also demonstrates that amidst one of the steepest falls in recent history from $13,900 to $6,410, the majority of investors were holding onto bitcoin, as pointed out by a researcher known as Rhythm.
Its an optimistic macro indicator for bitcoin
In the short-term, the price movement of bitcoin is likely to be swayed by trends in the margin trading market through platforms like BitMEX and Binance Futures.
Often times, long or short squeezes trigger a significant price movement to either the downside or the upside, creating large volatility in the crypto market.
In the long-term, however, macro and fundamental factors will determine the pathway of bitcoin. Fundamentals for the dominant cryptocurency are considered to be metrics such as hashrate, user activity, and declining supply or scarcity. Read More...