On-chain analyst William Clemente III is revealing that the quantity of Bitcoin being held for relatively longer-term periods is increasing.
In a new tweet, Clemente tells his 26,800 followers that the surge in the number of non-moving BTC is likely is due to institutional investors’ unwillingness to sell.
“The amount of non-moving Bitcoin supply, (in cold storage/custody) last moved/bought three to six months ago has grown to 2.5M BTC ($141.85B). Most likely institutions that bought in the last 3-6 months and aren’t selling.”
Clemente adds that the growth in the amount of the flagship asset being kept in custody or offline wallets is also a bullish signal.
“Very bullish sign, these buyers seem to be in it for the long term.”
The on-chain analyst’s tweet comes in the wake of Bitcoin falling nearly 15% from its all-time high of $64,863. At the time of writing, the largest cryptocurrency by market cap is trading at $55,261.
Willy Woo, also a renowned on-chain analyst, recently said the sell pressure witnessed soon after Bitcoin hit a record high was related to the expectation that Chinese-based Bitcoin miners would suspend operations over power outages.
“Initial sell-off due to anticipation of miners going offline in China. Sell pressure was sufficient to trigger liquidation of short term speculator positions forcing price violently down.”
Woo, however, pointed out that the longer-term fundamentals of Bitcoin remained “very strong.” The analyst added that Bitcoin is in a price-discovery phase, only rivaled by the period when the flagship crypto asset had a four-figure price.
“Supply profile (price when the supply last moved), now forming the largest cluster of price discovery since BTC was below $10,000. Validation of BTC as a trillion-dollar asset is immensely strong.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/spainter_vfx/Derya Draws