Bitcoin Breaks an Important Record as BTC Price Claws Above $37K

After a modest correction, Bitcoin continues its strong price performance trading near $37,500. An astonishing 70% of Bitcoin has remained inactive, unmoved for an entire year, marking a new record.

Such a trend depicted the resilience of Bitcoin holders who are reluctant to part with their holdings, particularly given the current high prices as well as the legal turmoil threatening it.

Long-Term Bitcoin Holders Not in Mood to Sell

In an eventful week for the crypto industry, the Department of Justice (DOJ) made a sweeping deal with the largest global exchange. The alleged offenses are extensive, and the repercussions are substantial. Binance is set to settle a fine of $4.3 billion for violating money transmission laws and US sanctions.

To top that, Changpeng “CZ” Zhao, the CEO who established the company in 2017 and propelled it to immense success, has been forced to step down. Millions of withdrawals were recorded soon after the fact, but investors are not worried about Bitcoin.

The percentage of Bitcoin supply that has remained inactive for two, three, and five years has hit all-time highs, demonstrating a remarkable commitment from investors, especially given Bitcoin’s dramatic surge to $37,000 this year.

Despite the doubling of its value, long-term investors have shown little interest in selling. Glassnode’s data revealed that 70.35% of Bitcoin’s supply has stayed dormant for at least a year, surpassing the previous record of 69.35% set in July.

On that note, Reflexivity Research’s weekly report stated,

“Bitcoin’s holder base in the wake of crypto-wide contagion and macro headwinds after its all-time highs in 2021. While higher prices will ultimately incentivize new sellers, with Bitcoin up over 100% in the same period, it appears Bitcoin holders are not planning on offloading inventory at these price levels or any time soon.”

Moreover, the approval of a spot Bitcoin ETF is expected to “unlock a tidal wave” of capital influx into the flagship crypto-asset that more than doubled this year.

Binance Still Holds the Most Bitcoins Among CEXes

CoinGlass’s Bitcoin on the exchanges tracker helps gauge the circulating BTC held by major centralized exchanges.

The turbulence on the legal side of things has failed to topple Binance from its position as the leader of the list with some 515,361 BTC on its books, followed by Coinbase Pro with 441,254 BTC, making it a close contender.

Bitfinex, with 385,046 BTC, and OKX, with 132,933 BTC, trailed behind, securing the third and the fourth positions, respectively.

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2023-11-23 18:00