Record 67.7% of Bitcoin Remains Untouched as US Banks Implode
Onchain data suggests that Bitcoin (BTC) appears to be a safe haven for investors looking to escape the unfolding banking crisis in the United States. A staggering 67.7% of all BTC has remained untouched for over a year, recent data from Glassnode shows.
Banks are failing, and a record high 67.7% of all BTC have not progressed over 1 year.
The stage is set for a parabolic bull run unlike any other.
Hyperbitcoinization is here. pic.twitter.com/DkCseaVzyS
— Joe Burnett (🔑)³ (@IIICapital) March 13, 2023
Disclaimer: The following op-ed represents the views of the author, and does not necessarily reflect the views of NewsBTC. NewsBTC is an advocate for both creative and financial freedom.
Bitcoin Rally in a Financial Storm
The baking crisis in the US, such as Silicon Valley Bank, Silvergate Bank and Signature Bank, has reverberated across the markets, sending US bank stocks tumbling.
On the other hand, Bitcoin and the broader cryptocurrency market are on the rise. BTC’s recovery has seen the coin record new highs in the first quarter of 2023, pushing prices above $26,000 at one point during the March 14 New York session.
This expansion of Bitcoin’s prices may be a testament to the network’s unique characteristics as a store of value and a decentralized currency that is not subject to the whims of central authorities such as the US Federal Reserve (Fed).
It should be noted that Bitcoins origin is based on the Great Financial Crisis (GFC) of 2008. The decentralized network was created to respond directly to this crisis, providing an alternative currency immune to the control of a single entity.
Satoshi Nakamoto, the mysterious creator of Bitcoin, included an inscription in the first block of Bitcoin that reads “The Times 03/Jan/2009 Chancellor on the brink of second bailout for banks.”
Centralized storms accelerate adoption of decentralized solutions?
Satoshi’s first message rings true as central banks prepare to intervene and avert a financial crisis. It also allows critics to question the reliability of central banks’ policies. Bitcoin embodies tthe idea of shifting away from centralized institutions by offering a secure, decentralized form of currency that is not subject to the whims of central authorities.
Investors now realizing Bitcoin’s value in times of economic uncertainty are increasing and increasing their holdings. As of February 1, 2023, long-term holders accounted for 73% of the BTC supply.
Currently at the greatest divergence between LTH vs. STH off #bitcoin supply ever.
LTHs 78% vs 22% STHs
Sales pressure is minimal from 15 million coins pic.twitter.com/wGORJngXlt
— James V. Straten (@jimmyvs24) 1 February 2023
This indicates that many investors looking for a safe haven recognize Bitcoin’s value proposition in uncertain times.
Over the weekend, Bitcoin facilitated over 600,000 transactions, clearing $33 billion. The network issued 2,037 new BTC, maintaining a steady and predictable inflation rate of 1.8%. Meanwhile, over 1 million unique addresses were generated, indicating that more people joined the network.
Over the weekend, Bitcoin settled ~$33 billion, facilitated ~600,000 transactions and issued 2,037 new BTC at a steady and predictable inflation rate of ~1.8%. ~1 million new addresses were generated and miners earned $43 million from producing 326 blocks.
The banks were closed. Fed was not necessary.
— Yassine Elmandjra (@yassineARK) March 13, 2023
The recent failures of traditional banks, the subsequent rise in the Bitcoin price, and a record high percentage of BTC remaining untouched may indicate that long-term holders are confident in Bitcoin’s ability to withstand market turbulence.
Feature image from Canva, chart from TradingView
