Analysts at IntoTheBlock report that for the first time since November 2021, the value of assets on the balance sheet of the vast majority of Bitcoin wallets has increased since the moment of purchase.

More than 13.6 million bitcoins are at the disposal of long-term investors who have held the asset for more than a year. As of February 19, the average time an asset was held before selling exceeded 365 days, a two-year high.

Newcomers who plan to enter the crypto market to buy BTC are in a less favorable situation and can more likely count on buying from existing users at the moment when they decide to fix their profits, IntoTheBlock says.

The current situation was the result of several market factors, analysts say. Firstly, against the backdrop of active interest from institutional investors in spot Bitcoin ETFs, coupled with a drop in BTC production from mining companies, the digital asset market is experiencing a clear imbalance between the needs and supplies of the asset. On the other hand, speculative expectations of significant growth in BTC, associated with the upcoming network halving in April and an even greater decrease in the supply of new bitcoins, are encouraging long-term investors to be restrained in sales.

Since these factors contribute to a decrease in supply against the backdrop of growing demand, the economic consequences suggest a potential increase in the value of Bitcoin, IntoTheBlock believes. For example, over the past week, transaction fees on the Bitcoin network have increased by almost 21% and amounted to about $14 million in absolute terms, which demonstrates an upward trend in the value of the asset, since transaction fees tend to grow in tandem with market value.

Now the price of the flagship cryptocurrency is about $65,152.

According to CoinMarketCap, on Monday, March 4, the first cryptocurrency broke through a new annual level of $65,000. At the moment, the cost of BTC reached $65,494.