Bitcoin price rose to over $ 10,000 and then back to over $ 12,000. The crypto father is up more than 60% and almost 200% from the Black Thursday low to date – but data suggests that no one wants to sell the asset. If investors aren’t taking profits after a huge rally, what exactly are they waiting for – and what does that say about demand for the cryptocurrency?
Unusual fundamentals offer unique insights into Bitcoin’s health
Bitcoin is a unique financial asset. Its value arises from a number of unusual factors, such as the scarcity of supply and the underlying blockchain network. The beauty of the distributed blockchain ledger technology is that all transactions, wallets and more are completely transparent. While Bitcoin migrates from wallet to wallet worldwide, the blockchain keeps records of these transactions that can be viewed by everyone. It allows analysts to dig deeper into the fundamentals of the asset and rely less solely on technical analysis for price promotions.
Bitcoin’s price is rising – but owners are waiting for much higher prices
According to well-known Bitcoin researcher Charles Edwards, the creator of tools like the hash ribbons, energy value, and other basic tools related to BTC, the number of addresses holding BTC for two or more years continues to grow. The analyst points out that the last time the number of addresses that hadn’t moved for so long reached a similar level was in January 2016 – right before Bitcoin’s epic bull run.