- Despite the volatility, Bitcoin holders increased, with a rising percentage of dormant supply.
- Interest in ETFs and addressing unit bias may further support BTC adoption and liquidity.
Despite the market volatility, the number of Bitcoin [BTC] holders continued to rise. A recent tweet showed the increasingly dormant Bitcoin supply, which has remained untouched for at least a year.
Read Bitcoin [BTC] Price forecast 2023-2024
HODLers stay strong
Bitcoin’s Percentage of Supply Last Active 1+ Years Ago statistic indicated that more and more Bitcoin holders refused to sell their BTC.
This was particularly remarkable, especially considering that a year ago when Terra collapsed [LUNA] took place, Bitcoin had initially fallen to $20,000, which is also the highest record of idle supply.
Source: Glassnode
Another reason for the bullish sentiment around Bitcoin could be institutional interest. Multiple funds have expressed interest in launching BTC ETFs. This belief can drive more liquidity in the crypto market and help prices move forward.
What role will ETFs play?
Some analysts also believe that Bitcoin ETFs can remove unit bias from hesitant investors. The term unit bias refers to the psychological bias that the absolute price of an asset or investment determines its affordability or attractiveness.
In the context of Bitcoin, unit bias suggests that individuals may find BTC expensive due to its high price per unit, even if they purchase fractional amounts. Unit bias can affect people’s perceptions of the affordability of assets and may affect their decision to invest or participate in certain investments.
Thus, with the availability of the ETF, investors can purchase units of the ETF at a lower price.
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At the time of writing, BTC was trading at USD 30,016. Along with the price increase, the MVRV ratio for Bitcoin also increased. This implied that most addresses with the king coin were profitable at the time of printing.
It remains to be seen whether these addresses will be tempted to sell their holdings after BTC continues to rise.
Source: Sentiment