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The latent Bitcoin offering mimics the BTC price peak metric to $ 20,000 in 2016

June 29, 2020

Bitcoin (BTC) hodlers are preparing for a bullish rally that led to record highs of $ 20,000 in 2017, according to a metric.

According to the on-chain monitoring resource Glass knot on June 28th The proportion of the Bitcoin offer that has not left your wallet for a year or more corresponds to that of 2016.

BTC channels 2016 inactive

Despite a hectic year for Bitcoin price movements, it is Data shows that more than 61% of the supply remained inactive due to ups and downs.

The latent Bitcoin offering mimics the BTC price peak metric to $ 20,000 in 2016The latent Bitcoin offering mimics the BTC price peak metric to $ 20,000 in 2016

This is a record added Dan Held, director of business development at the Kraken US Stock Exchange.

Glassnode found that similar behavior was also reported for hodlers in early 2016.. The implication is that there is reluctance to trade or sell and the belief that it will be more profitable to save.

“The last time we saw this amount of #Bitcoin, which hadn’t been collected in over a year, was in early 2016, before BTC’s upward trend to $ 20,000,” Glassnode summarized on Twitter.

Activity diagram for the Bitcoin offer

Graph of bitcoin offering activity. Source: Glassnode / Twitter

The phenomenon of bitcoin investment cycles is often referred to as “Hodl waves”.. As Cointelegraph reported in May, the data was long similar to 2016.

By comparison, the rally reached an inactive offer of 56% last year at $ 14,000. Unlike in 2016, however, there was no appeasement period between the inactive supply increase and the upward trend.

The path to the 2017 record only started with a latency period of around one year.

Paving the way for new records

Several other indicators have pointed to a prevailing saving policy in Bitcoin. Foreign exchange reserves are at a 13-month low, while there are signs of accumulation in wallets with small whale-sized balances.

At the beginning of June, Glassnode showed that 90% of the days were accumulated in the first half of 2020.

Since the block subsidies were halved in May, the number of whales, companies with a balance of 1,000 BTC or more, has increased by more than 2%.

However, a Hodler only needs a balance of 1 BTC to be in the top 3% of all Bitcoin addresses.