Looking to get into Bitcoin [BTC]? Here is the long and short of it all

by James · March 14, 2023

Bitcoin is now seeing renewed interest, but new investors may lose out
Inscriptions have also contributed to the increase in interest in BTC

Because of Silvergate and the SVB (Silicon Valley Bank) saga, many investors have lost faith in traditional banking systems. In fact, due to the aforementioned, there has been a new wave of sustained interest in the crypto market, especially blue chip coins like BTC and ETH.

Read BTC’s price forecast 2023-2024

Holds firmly

However, new addresses planning to buy BTC may have a tough time doing so, as long-term investors currently make up 73% of the total supply. These long-term investors are less likely to sell their holdings and are more likely to HODL their BTC.

This will make it difficult for new investors to obtain BTC at discounted prices.

To investors who realize they might want to own some Bitcoin now that the Fed is already stepping in, good luck getting what’s left.

Long-term owners now have 73% of the total supply.

You are not getting my coins and there are many others like me. pic.twitter.com/0sAZxskXl9

— Will Clemente (@WClementeIII) March 13, 2023

As the popularity of Bitcoins continues to rise, prices will also increase, making it more difficult for new addresses to purchase BTC.

However, the rise in BTC’s growing popularity cannot be solely attributed to the USDC event, as recent developments related to BTC inscriptions have also contributed to the same.

BTC inscriptions have now enabled NFTs to be minted through the Bitcoin network. They now account for 63% of all enrollment activity. NFTs such as Bitcoin Punks, Rocks and Taproot Wizards have shown great potential for Bitcoin’s NFT market.

Apart from NFT, other services such as naming systems have also generated interest in the Bitcoin network. The same was proved by the popularity of Sats Names, with the latter recording 46,000 new registrations in the last 2 weeks.

Source: Messari

Due to all these factors, it is unlikely that new addresses will be able to obtain new BTC at lower prices anytime soon. However, there are other indicators that suggest there may be an incentive for some BTC holders to sell their current holdings.

Lure of profit…

According to Santiment, the MVRV ratio for BTC has reached a new high in recent days. This suggested that a large majority of BTC holders could sell their coins at a profit.

Is your portfolio green? Check out the Bitcoin Profit Calculator

Source: Sentiment

Although long-term owners may not be as motivated to sell their holdings, many of the short-term owners who are still active may end up exiting their positions.

This could drive BTC’s prices down and give new investors an opportunity to buy BTC at an attractive price.