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Virtuals Protocol Transfers Millions of VIRTUAL Coins to Centralized Exchanges

Virtuals Protocol withdrew 4 million VIRTUAL coins, valued at 16.28 million dollars. Since December, 62.56 million dollars worth of VIRTUAL coins have been transferred to CEXs. Continue Reading: Virtuals Protocol Transfers Millions of VIRTUAL Coins to Centralized Exchanges The post Virtuals Protocol Transfers Millions of VIRTUAL Coins to Centralized Exchanges appeared first on COINTURK NEWS . Decrypt

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Over 30% of Bitcoin Supply Remains Dormant for Five Years: What It Means for the Crypto Market

The cryptocurrency market is constantly evolving, but some trends reflect a sense of stability amidst the volatility. According to IntoTheBlock , a significant portion of Bitcoin’s supply—over 30%—has remained unmoved for more than five years. This data, derived from the UTXO Age Indicator, highlights the growing trend of long-term holding within the Bitcoin community. What does this mean for Bitcoin and the broader crypto market? Let’s explore. Understanding the UTXO Age Indicator The Unspent Transaction Output (UTXO) Age Indicator is a key metric for tracking the lifecycle of Bitcoin transactions. Every Bitcoin transaction creates UTXOs, which are the outputs that remain unspent until a future transaction. When these UTXOs remain untouched for extended periods, they signify that holders are not actively trading or spending their Bitcoin. IntoTheBlock’s report shows that over 30% of Bitcoin’s supply—approximately 6.3 million BTC—is classified as dormant, with no movement in over five years. This trend underscores the confidence of long-term holders (also known as HODLers ) in the asset’s value proposition. The Implications of Dormant Bitcoin Supply 1. Long-Term Confidence in Bitcoin The unmoved Bitcoin supply reflects strong confidence among long-term holders in Bitcoin’s potential as a store of value. This behavior aligns with the narrative of Bitcoin as “digital gold,” a hedge against inflation, and a long-term investment asset. 2. Reduced Circulating Supply When such a large portion of Bitcoin is held without movement, the circulating supply effectively decreases. This reduction can contribute to scarcity, potentially influencing Bitcoin’s price during periods of high demand. 3. Resilience Against Market Volatility HODLers who do not react to short-term price fluctuations contribute to market stability. Their inactivity helps counteract panic selling during bearish phases, fostering resilience in Bitcoin’s price. 4. Potential for Future Selling Pressure On the flip side, dormant Bitcoin could re-enter circulation if holders decide to liquidate their assets, which could lead to selling pressure in the market. Monitoring changes in the UTXO Age Indicator can provide early warnings for such scenarios. Why Are Bitcoin Holders Staying Dormant? Bitcoin as a Store of Value The increasing adoption of Bitcoin as a store of value has encouraged holders to retain their assets for extended periods. Institutional investors, family offices, and even governments have embraced Bitcoin as part of their long-term investment strategies. Unspent Satoshi Coins A portion of the dormant supply includes early Bitcoin mined by its pseudonymous creator, Satoshi Nakamoto , which has never been moved. This supply remains untouched, contributing to the overall dormancy statistics. Low Trust in Fiat Alternatives Amid economic uncertainty, Bitcoin has become a preferred asset for those skeptical of traditional financial systems. HODLers may view their Bitcoin holdings as a hedge against devaluation of fiat currencies. Comparing Dormant Bitcoin with Other Assets Bitcoin’s dormant supply trends are unique in the financial world. Unlike stocks or gold, which are actively traded or exchanged, Bitcoin sees a significant percentage of its supply held long-term. This sets Bitcoin apart as a hybrid between an asset and a currency. Asset Dormancy Behavior Key Insight Gold Often stored and rarely traded Similar to Bitcoin in scarcity and long-term value retention Stocks Actively traded for profit or dividends Bitcoin is less about frequent trading, more about holding Fiat Currency Constantly circulated in the economy Bitcoin’s dormancy highlights its value storage potential Historical Trends of Dormant Bitcoin Dormant Bitcoin supply has been steadily increasing over the years, reflecting a shift in the market dynamics. Here’s how this trend has evolved: 2015: Only about 10% of Bitcoin supply was dormant for five years or more. 2020: The percentage rose to 20%, as Bitcoin became a recognized store of value. 2024: Surpassing 30%, indicating an even stronger commitment from HODLers. Potential Risks of Dormant Bitcoin Supply While a high percentage of dormant Bitcoin can signify market confidence, it also comes with risks: Loss of Access: Some of the unmoved supply may be permanently inaccessible due to lost private keys. Market Shock Potential: If large dormant wallets suddenly re-enter the market, it could lead to significant price volatility. What It Means for Investors The growing proportion of Bitcoin supply unmoved for over five years sends a clear message to both retail and institutional investors. It reinforces Bitcoin’s narrative as a long-term asset while highlighting its potential for scarcity-driven value appreciation. However, investors should remain vigilant, tracking changes in dormant supply as part of their market analysis. Conclusion With over 30% of Bitcoin’s supply unmoved for five years, the crypto market is witnessing a strong trend of long-term holding. This behavior underscores Bitcoin’s position as a resilient store of value and a hedge against traditional financial uncertainties. For investors, the data reinforces the importance of understanding market dynamics and the role of dormancy in shaping Bitcoin’s future. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries. Decrypt