Bitcoin accumulation near record 60%

For the national currency, the leading growth factors are the strong economy of the state, high demand forgoods abroad, international prestige andcitizens' confidence in the future. Being a decentralized currency, Bitcoin is not nationally tied, so the main driving force for it is the belief of the community, the degree of distribution and recognition of cryptocurrencies.

Image Source: Cryptocurrency ExchangeStormGain

Since Bitcoin is even the leading analyticalis recognized by agencies as a store of value, the main metric for it is the accumulation of coins. The more people believe in further price growth, the more actively they hold Bitcoin on their wallets. According to the latest data from the Glassnode agency, the share of coins that have been without movement for a year again exceeds 60%.

Image Source:glassnode.com

The longer the coins remain without movement, thecolder colors they are displayed on the graph. Each subsequent correction (whether it’s the 2018 or 2021 selloff) causes a smaller surge in supply to the cryptocurrency exchanges as fewer coins change hands. Mining continues, but 90% of all coins have already been mined.

Due to the prevalence of hodle sentiment, cryptocurrency exchanges are experiencing an outflow of funds at a rate of 42.9 thousand BTC per month.

Image Source:glassnode.com

However, the fact of accumulation and faith in a brighter futurenot enough to go from correction to growth. 2022 has prepared several challenges for investors at once - this is the tightening of monetary policy by leading regulators, the escalation of the conflict on the Russian-Ukrainian border, and the growth of global inflation.

Statistics also testify not in favor of an early exit from the current correction. So, according to Peter Brandt, it takes Bitcoin 21 to 40 months to update the historical maximum.