No doubt, bitcoin has had a very up-and-down year. It initially began in the low $7,000 range – where it ended 2019 – before falling into a high $6,000 position.
Bitcoin Is Going to Hit It Big
From there, political tension between the U.S. and Iran brought the currency to $7,000 all over again, and the currency continued to spike from there. It wasn’t until the coronavirus pandemic struck every global market in early March that the currency began exhibiting bearish behavior. It struck the $10,000 range in mid-February and stayed there for a few weeks before falling into the high $8,000 range.
That was the real spark for the asset’s negative slide. It dropped to $7,000, then $6,000 all the way down to the high $3,000 range – where it hadn’t been in well over a year – temporarily before settling at the $5,000 range. From there, it’s been a roller coaster between $6,000 and $7,000 though recently, bitcoin did spike beyond $7,500, giving many analysts and traders alike new hope about what the future held.
Now, Glass Node – a blockchain data and intelligence platform – announced in a new report that the upcoming halving – set to occur on the bitcoin blockchain within the next month – is going to set bitcoin on a whole new route that will see it trading higher than anyone could anticipate. The report reads:
In the weeks leading up to this milestone, a number of on-chain metrics are suggesting that investors agree with [the bullish sentiment around the halving] and are increasing their positions and hodling tight… In addition, HODLer net position change remained positive as BTC plummeted and, in the latter half of April, climbed to yearly highs suggesting that not only did long-term investors hold steady, they capitalized on the discounted BTC and increased their positions.
It is estimated that more than 40 percent of the total bitcoin supply hasn’t moved in the last two years. In other words, it hasn’t bee sold or traded. It’s stayed within whatever accounts currently hold it. This is a more than ten percent increase over 2019 – not a bad statistic considering how badly bitcoin has dropped over the past two months. Thus, traders were not intimidated by the poor market conditions.
Many People Have Saved Their Coins
Glass Node writes:
While this could also mean that the BTC sent to exchanges during the pandemonium has been static in their wallets since, exchange balances have fallen by over ten percent since the highs seen in February. Withdrawal of funds from trading platforms could further reinforce the idea of more bullish long-term expectations from traders… Despite the instability and uncertainty in both traditional and crypto markets, on-chain metrics point towards an optimistic outlook from investors as the halving approaches.
At the time of writing, bitcoin is trading for just under $7,600.
