Bitcoin price drops below USD 9,400. Chainalysis: 11.4 million BTC serves as a long-term investment

3 min reading

Only 3.5 million BTC is the subject of active trade, and the vast majority, i.e. as much as 11.4 million, serves as a long-term investment - according to the Chainalysis study. Meanwhile, the price of the leading cryptocurrency remain unchanged. Current Bitcoin price is USD 9,398.

bitcoin coins

Bitcoin is a long-term investment for most investors

As of June 2020, almost 18.6 million BTC has been extracted so far. According to the latest report of Chainalysis, the analytical company, over 60% of these BTCs, i.e. 11.4 million, are owned by entities (individuals or companies) that have never sold more than 25% of the coins ever received - moreover, these investors often store your digital assets for many years. Chainalysis has concluded that the vast majority of BTC's existing supply serves as a long-term investment.

btc shares on marketsource: blog.chainanalysis.com

Another 20% of BTC's existing supply, i.e. 3.7 million, has not moved for many years - so Chainalysis considered them lost. They could belong to people who lost their private key, which in most cases means losing cryptocurrencies forever. Some of these coins probably also belonged to people who in the early years of existence of cryptocurrency bought, received or mined BTC and due to the lack of rapid increase in their value simply forgot about them.

"Only 19% of all BTC mined, or about 3.5 million, is used for trade" - writes Chainalysis.

"The data show that most Bitcoins are owned by those who treat them as digital gold: assets that should be stored in the long term" Chainalysis wrote in a report. "But this digital gold is supported by an active trading market for those who prefer to buy and sell often," he added.

Current situation on the BTC chart

At the opening of yesterday's session the Bitcoin exchange rate was USD 9331, while at the closing it was USD 9304, which means a decrease of only USD 27, which is about 0.3%. In the weekly range, however, BTC gained close to 3%.

At the moment, the price of Bitcoin is 9398 USD.

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