Morgan Stanley reports a record number of unused BTC in the last six months
The share of the total supply of bitcoins not involved in transactions exceeded the figure during the bear market of 2018
28.10.2022 - 13:20
291
2 min
0
What’s new? Analysts at Morgan Stanley, a financial conglomerate, Sheena Shah and Kinji Steinmetz noted extremely low trading activity in the bitcoin market. 78% of the first cryptocurrency’s total supply has not been involved in transactions in the past six months, and the share continues to rise. Previously, a similar figure was observed during the downturn in the crypto market in 2018. At that time, the number of unused bitcoins was 75%, the Financial Times, citing a report by Morgan Stanley.
What else does the report say? Experts explained that those who bought BTC more than 6 months ago are holding onto their positions, probably waiting for prices to recover. For the remaining 22% of bitcoins owned by investors who have traded the asset over the past six months, the average breakeven price is just over $22 300, analysts calculated.
The lack of movement coincided with a downturn in activity on most exchanges, except for market leader Binance. The platform eliminated fees on trading in 13 pairs with bitcoin back in July, and it now concentrates about a fifth of all trading volume.
According to the document, Ethereum now correlates more strongly with stocks than bitcoin. According to experts, due to the relative stability of BTC, some investors may wonder if Ethereum’s transition to Proof-Of-Stake (PoS) has changed the dynamics of trading for bitcoin. That is because the Bitcoin blockchain does not restrict the access of certain market participants the way Ethereum does, analysts explained.
As of October 28, 12:35 UTC, BTC and ETH are trading at $20 158 and $1500, respectively.
Analysts note that bitcoin tends to find strong support at just above $18 100. They suggest that traders are buying dips.
Public miners are not mining as much BTC. They are having a rough year amid rising energy prices. The share prices of some of the biggest of them, such as Marathon Digital and Riot Blockchain, have been at a low point. Core Scientific said in October that its financial resources could be depleted by the end of the year. The company’s representatives said that if alternative capital-raising options fail, the company may be forced to seek bankruptcy protection.
As trading volumes fall and there are fewer market participants, intraday traders are increasingly influencing prices. Their activity is more influenced by technical price and momentum than by long-term asset managers.
For what will happen to the bitcoin price, read GetBlock Magazine’s article.
Useful material?
Incidents
Scammers took advantage of the former US president’s recent announcement of a real DeFi protocol
Sep 4, 2024
Technologies
The upgrade is aimed at implementing a new decentralized project governance system
Sep 2, 2024
Incidents
The company placed $2б4 billion in bonds maturing in 2026, but their value has fallen dramatically since the entrepreneur’s arrest
Aug 30, 2024
Incidents
In both cases, depending on the outcome of the investigations, the messenger could be blocked
Aug 29, 2024
Market
The project will offer a decentralized alternative to traditional banking services
Aug 29, 2024
Trends
Within a week of its launch, the platform managed to overtake its main competitor, Pump.fun on the Solana network
Aug 28, 2024