Bitcoin has been named the best performer among asset classes in 2023, but the cryptocurrency is still struggling to break new levels in its price. Despite the current bearish sentiment, many analysts have hinted and predicted a bull run in the coming months, especially as the market awaits approval of one spot Bitcoin ETF.
This has likely prompted many investors to hold on to their coins, as on-chain statistics have shown that the amount of idle Bitcoin supply recently hit a new all-time high.
Unmoved Bitcoin supply reaches record high
The industry expects the SEC’s approval of spot Bitcoin ETFs to trigger the next bullish run for Bitcoin’s price. Although the SEC has rejected this so far a number of requests for Bitcoin ETFs, many analysts believe it will not be long until one is accepted.
Given Bitcoin’s dominance over the entire cryptocurrency market cap, a spike in Bitcoin’s price is expected to ripple through to all other cryptocurrencies. As a result, so have investors keep their possessions in anticipation of a future price increase.
Recent data has shown that 94.8% of total Bitcoin supply has not changed over the past month, indicating a new record high for this metric.
JUST IN: 94.8% of #Bitcoin the offer has not moved in the last month, a NEW ALL TIME HIGH
pic.twitter.com/bNa4MdFbKW
— Bitcoin Magazine (@BitcoinMagazine) October 10, 2023
Similarly, a recent post from on-chain intelligence platform Glassnode showed that the amount of HODLed or lost Bitcoin hit a 5-year high of 7,906,288,227 BTC.
#Bitcoin $BTC The Number of HODLed or Lost Coins Just Reached a 5-Year High of 7,906,288,227 BTC
View statistics:https://t.co/dJK8rxBVD3 pic.twitter.com/6OxLnd611f
— Glassnode Alerts (@glassnodealerts) October 6, 2023
Bitcoin’s total net flow to exchanges decreased by 862.42 BTC ($23.27 million) in the past 24 hours, according to insights in graphs brought to you by IntoTheBlock. While this is relatively small compared to Bitcoin’s market cap, it shows that investor sentiment could change to bullish sentiment.
Source: IntoTheBlock
Time for a reversal?
Bitcoin price just recovered to $27,100 after failing to gain traction above the $27,800 resistance in the in the middle of the escalating Israel-Hamas tensions in the Middle East. Despite this, BTC still remains the best performing investment object of this yearwhich outperforms stocks and bonds with a year-to-date (YTD) return of 63.3%.
Some investors view Bitcoin unmoved as a sign of firm confidence in the network and the adoption of a long-term mentality. Whatever the reason, Bitcoin’s unmoved supply metric is worth watching as an indicator of holder sentiment and potential future price pressure.
Recent events, particularly the tension of an impending recession in the US, have prompted billionaire hedge fund manager Paul Tudor Jones to claim that this is the best time to buy Bitcoin.
BTC still holding above $27,000 | Source: BTCUSD on Tradingview.com
Featured image from Shutterstock, chart from Tradingview.com
