- Bitcoin holders increased despite volatility, with a rising percentage of dormant supply.
- Interest in ETFs and addressing unit bias may further support BTC’s adoption and liquidity.
Despite market volatility, the number of Bitcoin [BTC] holders continued to rise. A recent tweet showcased the increasingly dormant Bitcoin supply, which has remained untouched for at least a year.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
HODLers remain strong
Bitcoin’s Percent of Supply Last Active 1+ Years Ago metric indicated that more and more Bitcoin holders were refusing to sell their BTC.
This was particularly remarkable, especially considering that a year ago, when the collapse of Terra [LUNA] occurred, Bitcoin had initially dropped to $20,000, which is also the press time record high of inactive supply.
Source: Glassnode
Another reason for the bullish sentiment around Bitcoin could be institutional interest. Multiple funds have showcased an interest in launching BTC ETFs. This faith may drive more liquidity in the crypto market and aid prices further.
How big of a role will ETFs play?
Some analysts also believe that Bitcoin ETFs may eliminate unit bias from hesitant investors. The term “unit bias” refers to the psychological bias that the absolute price of an asset or investment determines its affordability or attractiveness.
In the context of Bitcoin, unit bias suggests that individuals may consider BTC expensive simply because of its high price per unit, even if they purchase fractional amounts. Unit bias can influence people’s perception of an asset’s affordability and may impact their decision to invest or participate in certain investments.
With the availability of the ETF, investors can thus purchase units of the ETF at a lower price.
Is your portfolio green? Check out the Bitcoin Profit Calculator
At press time, BTC was trading at $30,016. Along with its growth in price, the MVRV ratio for Bitcoin also surged. This implied that most addresses holding the king coin at press time were profitable.
It remains to be seen whether these addresses will be tempted to sell their holdings after BTC surges further.
Source: Santiment