Private investors are likely to buy the offer as a hedge against economic downturns
Data shows that over 6 0% of Bitcoin supply has not been moved in over a year.
According to the on-chain analytics provider Glassnode, 42% of the Bitcoin offering has remained in wallet addresses in over two years.
While the BTC price was unable to regain the $ 10,000 mark in 2020 after several attempts, data suggests that Bitcoin holders see the cryptocurrency as a hedge after economic turmoil and market downturns.
Glassnode has also compiled data showing that another 28% of the circulation offer has not been moved in more than three years.
Bitcoin is seeing an influx of retail investors
The price wars for Bitcoin below USD 10,000 in 2020 were also not supported by the entry of other private investors. The decline this week to a low of $ 8,900 coincided with an influx of retailers looking to make a first investment in the cryptocurrency market.
According to on-chain data, the Bitcoin network has seen an increase in new wallet addresses. According to statistics, the number of wallets with at least 0.1 bitcoins (worth approximately $ 941 at current prices) has exceeded the three million threshold.
Fig. 1: According to the graphic, retail interest in the BTC is currently at a record high / Source: Glassnode
In particular, the glass node data also shows that the number of Ethereum addresses with at least 0.1 ether has recently passed the three million mark. So far, growth has been a gratifying 10.9% in 2020.
In an interview with Bloomberg TV, Kraken CEO Jesse Powell recently attributed the increase in accounts to "hedge funds, asset managers, private investors and day traders" in particular.
He added that the crypto space "saw people take their 'stimulus checks' and invest them in Bitcoin."
Bitcoin fell 0.3% at the time the article was created, with the S&P 500 and other major stock indices seeing similar losses today. The S & P 500 fell 0.06%, the Dow 0.07%.
The correlation suggests that Bitcoin could rally similarly to a rally in a bull run for the stock market as it did in March when currencies moved downward in parallel with stocks.
Fig. 2: A comparison diagram for Bitcoin and S&P 500 / Source: TradingView
Since then, however, the S&P and Dow stock markets have risen 44% and 48%, respectively. If the markets go green, switching to a bull market would also result in significant bitcoin moves. The same had risen by over 140% from $ 3,800 lows on March 12th
The Bitcoin price index was $ 9,411 at the time of writing, as the details at Coin360.com showed.
