Published: 27.04.2022
Article reading time:
2 minutes.
Analysts of the research platform Arcane Research state that investors who accumulate bitcoin reduce its liquidity in the blockchain and increase the market value.
Arcane Research posted a report stating that the supply share of bitcoin has changed over the year and now stands at 64%. The authors of the report express the opinion that investors are actively hoarding bitcoins. This is evidenced by the fact that since March 2020, the supply of bitcoins has been steadily falling, reaching levels that were last seen at the end of 2018.
Arcane Research experts are confident that the growing accumulation of bitcoins in over-the-counter wallets will lead to a drop in the liquidity of the first cryptocurrency. This can cause a shortage of BTC liquidity and an increase in the price.
In another report, Arcane Research specialists note an increase in bitcoin activity in the blockchain. The report says that the number of transactions per day increased by 4.58%. Only in the last week and on April 25, 262,268 transactions were made.
What’s more, the average transaction value on April 25 was $20,487. The report attributed this to rising spot volumes as well as higher block creation rates.
The authors of the report warn against jumping to the conclusion that the Bitcoin market is booming. In fact, the bitcoin speed indicator showed that the level of activity associated with BTC fell sharply after reaching a transaction value of $25.
The report states that there is a possibility of BTC transactions between five or so wallets per day. This, again, suggests that HODL investors are doing what they do best, holding bitcoin in anticipation of a rise in price.
At the same time, the analytical company Glassnode believes that the support of private investors adhering to the HODL strategy will not help Bitcoin stay at $30,000. The market in the current situation needs large Bitcoin holders.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
