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Analytical firm IntoTheBlock, reviewing On-Chain data, announced that over the past five years, approximately 29% of all bitcoins in existence have not been moved. Analysts at IntoTheBlock explained in a tweet that a large number of bitcoins that haven’t moved are likely lost forever.
29% of all bitcoins lost?
Recent analysis by IntoTheBlock is a stamp of approval on a recent report by cryptocurrency exchange Bitfinex. In the said report, it is mentioned that the amount of unmoved bitcoins has reached its maximum and this issue has led to the reduction of the liquidity of this digital asset.
Bitfinex has announced that almost 70% of its bitcoins in circulation have not been moved for at least a year, the most since the king of cryptocurrencies started.
While there is no specific reason why a significant portion of the bitcoins in recent years have moved, analysts speculate that most of these bitcoins are likely lost forever. Needless to say, this issue may indicate the increasing interest of investors in the capacity to increase the value of this digital asset in the long term.
Some large investors have adopted a holding-for-the-long (HODL) model; Because they expect the value of Bitcoin to increase significantly and as a result, they consider this cryptocurrency as a long-term investment option.
The halving event
Another factor to consider is the next Bitcoin halving event, which will take place in April 2024. In fact, the mechanism of Bitcoin causes the reward for mining new blocks in the network of this cryptocurrency to be halved every four years. The upcoming halving will reduce the reward for mining each new block on the Bitcoin blockchain from 6.25 to 3.125 bitcoins.
The halving event is considered as one of the important signs of Bitcoin price increase; For this reason, investment companies try to collect and hold more bitcoins before the mentioned event.
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