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.
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 V. Straten (@jimmyvs24) 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