Bitcoin Increasingly Being Used as ‘Buy-and-Hold’ Asset: Bitfinex Report

Bitcoin rose this week, posting a modest 2% gain. As the biggest crypto asset continues to languish below several key levels, the buildup of holders over the past few weeks suggests it is “increasingly being used as a buy and hold asset.”

• According to the latest information from Bitfinex reportmore than 68.45% of the total supply, or 13.27 million of the existing 19.4 million BTC, has not moved for more than a year.
• This growing trend of investors to own strongly demonstrates a shift in attitude towards Bitcoin ownership.
• Another important indicator that underscored the prevailing long-term accumulation trend is the number of “Wholecoiner” addresses crossing the 1 million mark this week.
• These Wholecoiners can be defined as entities or individuals owning at least one whole BTC and constitute a substantial segment of the Bitcoin community.
• The data indicates that these investors have been gradually accumulating since mid-2021, and there has been almost no noticeable reversal in the upward trajectory of 1-BTC wallets since.
• The trend became even more pronounced in 2022 when the market plunged, and this cohort saw a 20% increase as a result.
• Reiterating its previous analysis that Bitcoin could be in the early stages of a bull market, Bitfinex added,

“Despite the current market downturn, long-term Bitcoin holders are undeterred. The growing trend of long-term holding, coupled with the rise of Wholecoiners and the benefits to miners of increased transaction fees, paints a picture of a resilient Bitcoin ecosystem.