A Record 67.7% Of Bitcoin Remains Unmoved As U.S. Banks Implode

Dalmas Ngetich

1 year ago

3 mins read

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Onchain data suggests that Bitcoin (BTC) appears to be a haven for investors looking to escape the unfolding banking crisis in the United States. A staggering 67.7% of all BTC has remained unmoved for over a year, recent data from Glassnode shows.

Banks are failing, and a record high 67.7% of all BTC has not moved on over 1 year.

The stage is set for a parabolic bull run unlike any other.

Hyperbitcoinization is here. pic.twitter.com/DkCseaVzyS

— Joe Burnett (🔑)³ (@IIICapital) March 13, 2023

Disclaimer: The following op-ed represents the views of the author, and may not necessarily reflect the views of NewsBTC. NewsBTC is an advocate of creative and financial freedom alike.

Bitcoin Rallying In A Financial Storm

The baking crisis in the U.S., such as Silicon Valley Bank, Silvergate Bank, and Signature Bank, has sent reverberations across the markets, causing U.S. bank stocks to plummet.

On the other hand, Bitcoin and the broader cryptocurrency market are rallying. BTC’s recovery has seen the coin register new Q1 2023 highs, pushing prices above $26,000 at some point during the New York session on March 14.

Bitcoin Price On March 14| Source: BTCUSDT On Binance, TradingView — Bitcoin Price On March 14 | Source: BTCUSDT On Binance, TradingView

This expansion of Bitcoin’s prices could be a testament to the network’s unique attributes as a store of value and a decentralized currency not subject to the whims of central authorities like the United States Federal Reserve (Fed).

It should be noted that Bitcoin’s origins are based on the Great Financial Crisis (GFC) of 2008. The decentralized network was created to respond directly to this crisis, providing an alternative currency immune to the control of a single entity.

Satoshi Nakamoto, the mysterious creator of Bitcoin, included an inscription in the first block of Bitcoin that reads “The Times 03/Jan/2009 Chancellor on the brink of second bailout for banks.”

Centralized Storms Accelerating Adoption Of Decentralized Solutions?

Satoshi’s initial message rings true as central banks prepare to intervene and avert a financial crisis. It also allows critics to question the reliability of central banks’ policies. Bitcoin embodies the idea of shifting away from centralized institutions by offering a secure, decentralized form of currency that is not subject to the whims of central authorities.

Investors now realizing Bitcoin’s value in times of economic uncertainty are ramping up, increasing their holding. As of February 1, 2023, long-term holders constituted 73% of the BTC supply.

Currently at the greatest divergence of LTH vs. STH of #bitcoin supply ever.

LTHs 78% vs 22% STHs

Sell pressure is minimal from 15 million coins pic.twitter.com/wGORJngXlt

— James Van Straten (@jvs_btc) February 1, 2023

This indicates that many investors looking for a safe haven recognize Bitcoin’s value proposition in uncertain times.

Over the weekend, Bitcoin facilitated over 600,000 transactions, settling $33 billion. The network issued 2,037 new BTC, maintaining a steady and predictable inflation rate of 1.8%. Meanwhile, over 1 million unique addresses were generated, indicating more people joining the network.

Over the weekend, Bitcoin settled ~$33 billion, facilitated ~600k transactions, & issued 2,037 new BTC at a steady & predictable ~1.8% inflation rate. ~1 million new addresses were generated & miners earned $43 m producing 326 blocks.

Banks were closed. The Fed was not needed.

— Yassine Elmandjra (@yassineARK) March 13, 2023

The recent failures of traditional banks, the subsequent rally in the Bitcoin price, and a record-high percentage of BTC remaining unmoved could indicate that long-term holders are confident about Bitcoin’s ability to weather the market’s turbulence.

Feature Image From Canva, Chart From TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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