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

Summary:
Bitcoin turned higher this week, recording a modest 2% gain. While the largest crypto asset continues to languish below several key levels, the holders’ accumulation over the past several weeks suggests that it is “increasingly being used as a buy-and-hold asset.'” According to Bitfinex’s latest report, over 68.45% of the total supply, amounting to 13.27 million of the 19.4 million BTC in existence, have not moved in over a year. This growing trend of investors holding strongly demonstrates a changing attitude towards Bitcoin ownership. Another important indicator that underlined the prevailing trend of long-term accumulation is the number of ‘Wholecoiner’ addresses crossing the one million mark this week. These Wholecoiners can be defined as entities or individuals

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Bitcoin turned higher this week, recording a modest 2% gain. While the largest crypto asset continues to languish below several key levels, the holders’ accumulation over the past several weeks suggests that it is “increasingly being used as a buy-and-hold asset.'”

  • According to Bitfinex’s latest report, over 68.45% of the total supply, amounting to 13.27 million of the 19.4 million BTC in existence, have not moved in over a year.
  • This growing trend of investors holding strongly demonstrates a changing attitude towards Bitcoin ownership.
  • Another important indicator that underlined the prevailing trend of long-term accumulation is the number of ‘Wholecoiner’ addresses crossing the one million mark this week.
  • These Wholecoiners can be defined as entities or individuals possessing at least one entire BTC and constitute a substantial segment of the Bitcoin community.
  • Data indicates that these investors have been gradually amassing since mid-2021, and there has been almost no notable reversal in the upward trajectory of 1-BTC wallets ever since.
  • The trend became even more pronounced in 2022 as 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 remain undeterred. The increasing trend of long-term holding, coupled with the rise of Wholecoiners and the benefit to miners from increased transaction fees, paints a picture of a resilient Bitcoin ecosystem.”

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