According to Chainalysis, most BTC holders are hodling given sell-off involved only 5% of available supply.
Chainalysis has released a report showing that just 5% of available Bitcoin (BTC) was sent to cryptocurrency exchanges to be sold in the past week.
According to the blockchain analytics firm, inflow to exchanges rose sharply starting March 9 and peaked on March 13 when over 319,000 bitcoin hit exchanges for sale. On average, exchanges have received about 52,000 bitcoin per day since the start of the year.But that skyrocketed to see over 1.1 million BTC on cryptocurrency exchanges by March 17. Chainalysis attributes this to the “unprecedented increase in people looking to sell bitcoin,” as uncertainty and fear over COVID-19 pandemic hit global markets.
Graph courtesy of Chainalysis
Most Bitcoiners Are HODLers
March 12 and March 13 alone saw the sell-off spike 9x, with close to 475,000 bitcoin ending up on exchanges. As per the report, it is this rush for cash that caused the price of bitcoin to plummet over 50% to hit lows last seen in December 2018.
In the period under review, just over 712,000 bitcoin above average was sent to exchanges. According to Chainalysis, this was “unprecedented.” However, the spike represented “just 5% of available bitcoin…”
(Available BTC refers to the amount of mined bitcoin minus the total amount of lost BTC).
“The majority of available bitcoin was not cashed out, suggesting that most bitcoiners are happy to hold.”
Bitcoin up 6%, price stable
Bitcoin price has somewhat stabilized after last week’s collapse that saw Bitcoin plummet to prices close to $3000. As of press time, BTC price looks to be consolidating support above $5000, quite dissimilar to the chaos witnessed in the global equities markets.
While a downside move remains very much possible, Chainalysis suggests BTC is benefitting from the fact that all the “excess bitcoin [sent to] exchanges has been sold.” With this, the oversupply that aided the sell-off is over. At least “for now,” the report adds.
Bitcoin is up +6% in the past 24 hours, with prices looking to breach resistance at $5,500.
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