Bitcoin adoption up despite Binance FUD

March 28, 2023 at 7:31 pm

Markets

Glassnode data has revealed some intriguing statistics that indicate new trends in bitcoin (BTC) adoption and holders’ behavior.

According to Glassnode data, the number of addresses holding at least 0.1 bitcoin just reached an all-time high. This milestone suggests a significant increase in the adoption of bitcoin, as more individuals and institutions become more comfortable with the idea of owning and using the digital currency.

BTC holders are on the rise

The growth in addresses with 0.1 or more bitcoin is a strong indicator that the cryptocurrency is becoming more mainstream and that new investors are entering the market.

A trend like this is particularly noteworthy, as it demonstrates that even in a period of price fluctuations and market uncertainty, the adoption of bitcoin continues to expand.

Furthermore, it highlights that people are not merely looking to make short-term gains from trading bitcoin, but are instead choosing to hold onto the currency, potentially viewing it as a long-term store of value.

Another crucial metric from Glassnode is the percentage of the bitcoin supply that has been inactive for at least two years, which has just reached an all-time high of 52.679%. This indicates that a majority of bitcoin holders are currently adopting a “hold” strategy, and not engage in trading or spending.

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The rise in long-term holders is a positive sign for the stability of the bitcoin market, as it suggests that investors have confidence in the long-term potential of the digital asset.

These holders are likely to be less swayed by short-term price fluctuations and more focused on the bigger picture. This behavior is reminiscent of the traditional “buy and hold” strategy often employed by investors in stocks and other assets, which can contribute to a more stable market environment.

Another key figure from Glassnode’s data is the 24-hour net flow of bitcoin from cryptocurrency exchanges, which shows that $99.8 million more BTC left crypto exchanges than was moved onto them.

The negative net flow indicates that more bitcoin is being withdrawn from exchanges than deposited, implying that investors may be moving their assets into cold storage or other forms of secure holding.

The market could react

The reduction in the amount of bitcoin held on exchanges can be seen as a bullish signal for the market, as it suggests that investors are taking a long-term approach to their holdings.

With fewer coins available for immediate trading or selling on exchanges, this trend could contribute to a lower sell pressure on the market, potentially leading to more price stability and upward momentum.

Over the last 24 hours, the price of bitcoin has seen a modest increase of 0.6%, bringing its current value to $27,042. However, when considering the last seven days, the price has dipped by 3.51%.

Despite this short-term decline, the trends observed in the Glassnode data, such as increased adoption, long-term holding, and reduced exchange holdings, paint a promising picture for the future of bitcoin despite recent negative news.

The analysis follows a recent report that after the CFTC accused Binance of willful evasion of federal laws and of running an unlawful digital asset derivatives exchange, its CEO Changpeng Zhao fired back at the regulator.