• Despite market volatility, the number of Bitcoin [BTC] holders continued to rise.
• Interest in ETFs and addressing unit bias may further support BTC’s adoption and liquidity.
• At press time, BTC was trading at $30,016 with its growth in price, the MVRV ratio for Bitcoin also surged.
Bitcoin Holders Rise Despite Volatility
Despite market volatility, the number of Bitcoin [BTC] holders continued to rise. A recent tweet showcased the increasingly dormant Bitcoin supply, which has remained untouched for at least a year. The Percent of Supply Last Active 1+ Years Ago metric indicated that more and more Bitcoin holders were refusing to sell their BTC. This was particularly remarkable, especially considering that a year ago when the collapse of Terra [LUNA] occurred, Bitcoin had initially dropped to $20,000 – which is also the press time record high of inactive supply.
Interest In ETFs And Addressing Unit Bias
Another reason for the bullish sentiment around Bitcoin could be institutional interest. Multiple funds have showcased an interest in launching BTC ETFs. This faith may drive more liquidity in the crypto market and aid prices further. Some analysts also believe that Bitcoin ETFs may eliminate unit bias from hesitant investors. The term “unit bias” refers to the psychological bias that the absolute price of an asset or investment determines its affordability or attractiveness; however with availability of ETF investors can purchase units at lower price point thus eliminating this bias effect on investments decision making process .
MVRV Ratio Surge For BTC
At press time, BTC was trading at $30,016 with its growth in price; subsequently MVRV ratio for bitcoin also surged implying most addresses holding king coin at present are profitable . It remains to be seen whether these addresses will be tempted to sell their holdings after BTC surges further .
The increasing numbers of HODLers despite volatility as well as institutional interests in launching Bitcoin ETF’s might further support adoption and liquidity of bitcoin while offering potential buyers lower entry points through fractionalized purchasing . However it remains unknown what will become outcome if these HODLers decide to cash out their gains after surge in prices .