Almost half of all Bitcoin BTC/USD in circulation has not moved an inch for the past 2 years, according to data from Ark Investment Managements monthly report.
What happened: According to Ark, Bitcoin holder behavior is “stronger than ever” over long time horizons.
The percentage of bitcoin supply that hadn’t moved in two years or more ended the year at 47% — an all-time high.
Although in the early years of the bitcoin network around $700 was the lowest price level at which most existing bitcoins were mined and transacted, Ark Invest believes that the $16,000 to $17,500 area is the strongest area due to a large amount of bitcoin Support is in exchange (7% of total supply) in this price range.
See More: Best Crypto Day Trading Strategies
The recent plunge in bitcoin prices has been attributed to three key factors, according to Ark:
- Significant outflows of exchange-held bitcoin after FTX collapse
- A high level of capitulation among traders in the face of losses; and
- Accumulation of Bitcoin by buyers during the sell-off. All of these factors have contributed to large amounts of Bitcoin being traded at bargain prices.
The report noted that Bitcoin’s monthly volatility fell to 25% in late 2022, its lowest level since late 2020. After a brief spike in November, December saw a welcome drop, suggesting one since mid-late 2020 and late 2020 unprecedented period of relative stability suggests 2018.
Ark Managing Director Cathie Wood in November stood by her prediction that Bitcoin would reach $1 million by 2030.
price action: Bitcoin traded at $17,429.23 in the last 24 hours, up 1%, according to Benzinga Pro.
Continue reading: Brady, Bundchen, Kraft and this billionaire hedge fund manager hold FTX stocks: So much
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