75% of all Bitcoin has been idle for over 6 months

Despite Bitcoin being down over 20% from its all-time high, the majority of investors are sitting tight. Over 75% of all Bitcoin has not changed addresses in the past six months.

That marks a huge jump from last week, when on August 11, the figure was around 45%.

Bitcoin for the long term

According to Cointelegraph analysts, this indicates that more and more long-term investors are choosing to hold their Bitcoin. “Possibly with the expectation of higher prices,” Cointelegraph said.

That seems a logical conclusion, because you would not hold a financial asset with the expectation that prices would fall.

“The holding trend results in fewer and fewer Bitcoins being available for trading, which could lead to price increases as demand increases and supply decreases,” Cointelegraph analysts continued.

James Check warns of further declines in the Bitcoin price based on another statistic. He notes that 80% of short-term holders are underwater.

This means that they bought their Bitcoin at higher rates than the current rate. According to James Check, this could lead to new panic and therefore lower rates.

Fear in the market

At the time of writing, there is still a lot of fear in the market. The declines of the past few weeks have certainly not improved sentiment.

Alternative’s Fear & Greed Index comes in today with a score of 28/100. According to the index, this means there is “fear” in the market.

Last month there was still greed with a score of 74/100, but now there seems to have been a total reset.

In principle this is of course bad news, if it were not for the fact that it would also provide room for a possible new revival of Bitcoin. These kinds of “resets” of sentiment are often necessary to get a real second leg of the bull market.

But of course that second leg still has to come.

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