Bitcoin has experienced a bullish trend in 2022, which is reflected in the number of BTC held in storage. Bitcoin long-term storage hit a new record high in early February as holders expect a return to pre-2022 price levels.
49% of Bitcoin In Long-Term Holdings
According to data from analytics company Glassnode, 49% of the total Bitcoin supply has remained in the same wallet for more than two years. This is equivalent to over 9.45 million Bitcoins or about $220 billion at the time of writing.
Glassnode further explains this trend with a chart that shows the previous peak coming in the last quarter of 2020 and early 2021. The peak ended during the 2021 bull market as holders started to sell when the price of BTC rose.
After a massive dip in the value of Bitcoin, the indicator dipped and remained stable for most of the last year. This means that Bitcoin holders decide to wait for a price increase before moving their assets in the middle of a bear market.
Related reading: Breaking: Bitcoin Breaks Above $24,000 For First Time In 2023
However, this trend has changed since December, with a significant increase driven by a consistent increase in the value of Bitcoin. Currently, 49% of Bitcoins have not been moved in two years, and investors are biding their time as we face a new bullish cycle for BTC.
Bullish Indicator For Bitcoin
The fact that investors are holding on to the coin is a bullish indicator for Bitcoin and shows that there is still a lot of confidence in the leading cryptocurrency.
Bitcoin is considered a major market mover, and some institutions hold the asset on their balance sheets. It is also legal tender in El Salvador and the Central African Republic, with several countries considering adding the digital currency to their list of national currencies.
BTC has also been used as a means of donation in the Russia-Ukraine war, and the latest bullish cycle could make more inroads for adoption. Since the beginning of this year, Bitcoin is up about 38% and recently reached the $23,000 price mark for the first time since August 2022.
Long-term investors tend to prepare to take profits at higher levels as prices continue to reach new levels. Earlier in January, the number of Bitcoin addresses in MediaWiki reached a new level, with 68% of addresses currently in MediaWiki.
The last time this happened was in the middle of 2022, when the price of BTC was about $40,000 and it dropped significantly. So there is a possible trend for a longer bullish rise in the coming months.
Related reading: Bitcoin Derivatives Market Volume Shows Bullish Trend After 2022 Decline
However, some believe that the first quarter of the year will witness a consolidation of the BTC price before a significant price increase in the second half of the year. It will be interesting to see if this is a temporary price spike or a major bull.
Option images from Unsplash.com/ charts from TradingView and Glassnode.