Around 76 Percent of Bitcoin’s Circulating Supply Reportedly ‘Illiquid’, Indicates Holding Trend Among Investors

2021 ends as a successful year for the crypto sector with Bitcoin maintaining its position as the dominant king of the price charts. A recent report by analytics provider Glassnode observed that 76% of Bitcoin’s circulating supply is currently illiquid, meaning it’s moved into wallets with no spending history. The anonymous Bitcoin creator known as Satoshi Nakamoto has capped the total number of Bitcoin tokens mined at 21 million. According to CoinMarketCap, 18.9 million Bitcoins have been mined and are in circulating supply.

“We can see that in the final months of 2021, even as the price corrects, there has been an increase in coins from liquid to illiquid wallets,” Glassnode said in a statement. report.

The remaining 24 percent of the Bitcoin supply is currently for liquidation circulation from active wallets spending or trading their holdings.

Follow CoinMarketCap40,049,185 crypto wallets with Bitcoin holdings. Of these, 963,625 are active wallets.

The Glassnode report has shown that Bitcoin investors are more interested in holding and accumulating tokens than spending them. Bitcoin The holders are clearly expecting large returns from their holdings in the coming days.

“There has been an increase in coins from liquid to illiquid wallets. Through December, coins moved to increasingly illiquid wallets at a rate of 50,000 to 100,000 Bitcoins per month, reflecting a broader accumulation of possibilities,” the findings added.

In the past thirteen years since Bitcoin first appeared survival In 2009, cryptocurrencies emerged as the world’s most valuable cryptocurrency.

In 2009, each Bitcoin token was priced at $0.0008 (approximately Rs. 0.060), down quite a distance from its current price.

Also notable is the pseudonym of Bitcoin’s creator, Satoshi Nakamoto, which holds 1,125,150 Bitcoin tokens in a dormant wallet, worth around $66 billion (approximately Rs. 4,96,814 crore).

Although 90% of Bitcoin’s 21 million pre-decision tokens have been mined, it will take 120 years for the remaining 10% of Bitcoin tokens to enter the circulating supply, a report in December said.

The “Bitcoin Halving” process has emerged as the reason for this extended period of time required to bring all Bitcoin tokens to market.

The term refers to a pre-programmed event that occurs every 210,000 blocks, which in the current situation is about four years from today, and this reduces Bitcoin’s inflation rate as well as the rate of circulation. throughput of new tokens is halved.

Bitcoin’s current market capitalization is $2,231,353,914,105 (approximately Rs. 1,66,16,892 crore).

Cryptocurrency is an unregulated digital currency that is not a legal tender and is subject to market risk. The information provided in the article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any perceived recommendations, forecasts or any other information contained in the article.