Whenever you stash a valuable item, its price starts to get affected. The behaviour of accumulation always tweaks the cost of the commodity. Whether fuel, gold or any precious stock option, their market gets moved with it. And today, Bitcoin is going through the same cycle. The most expensive cryptocurrency is not seeing any action among the digital wallets of its owners.
Why are holders reluctant to sell their Bitcoin?
As per some reports, Bitcoin’s dormancy period is hitting an all-time high. Consequently, the supply of Bitcoin is much higher than its demand. And the question is, did it happen all of a sudden? Or is this the aftermath of another incident? Or worse, is this an inkling of an upcoming incident?
Interpreting the trend
Well, the charts indicate something else. According to them, holders have been reluctant to sell their Bitcoin since 2021. It’s the time when the bullish trend got hold of the market again after a downtrend. Now if you see the graphs, you’ll notice that Bitcoin’s price plummeted whenever they were overly used.
So holding on to the coins seem to be a prudent response from the holders. By the way, if you’re wondering what holding is, it means holding. Crypto users call it to hold when someone from the community mistyped its spelling. Since then, everyone has called it hold instead of hold.
Returning to the news, the owners of these precious assets aren’t just ready to part with it. But not everyone is convinced that this is a good thing. As per BeInCrypto, the long duration of tight price ranges is always followed by market volatility. However, it hasn’t happened so far; on the other hand, Bitcoin is gaining value.
The whole-coiners and optimists
Furthermore, there is one more angle to it. Bitcoin has a supply limit which is currently capped at 21 million. This makes the first crypto highly valuable. And to make things more interesting, we have the concept of whole-coiners. A whole-coiner is a person who holds one whole Bitcoin. According to Glassnode, the number of people owning the entire coin has reached 1 million.
Another sentiment is that even with price fluctuations sometimes, Bitcoin will ultimately be sky-high. So you understand why people don’t want to give away their precious digital assets that easily.