According to data from Santiment, just as the Bitcoin price was under a lot of pressure on the way to recovery due to information about US inflation and the possibility of banning the use of crypto as a means of payment from Russia, the amount of BTC accumulated investors increased dramatically.
As of February 12, the supply of Bitcoin on exchanges has dropped to just 10.87%, the lowest rate recorded since December 2018 (the former “crypto winter”). This trend suggests how limited a broad-based sell-off will be in the near future. Up to 90% of the BTC supply is now mined.
Bitcoin has been somewhat volatile over the last week. However, data provider Santiment reports that the positive sentiment lead to a FOMO-like event which caused the price to drop later. It further added: “Bitcoin’s crowd sentiment has remained positive this week, and this is likely contributing to the decline it & #altcoins have seen to end the week. We will be looking for a bit of crowd #FUD as a signal that bounces will happen heading into next week“.
BTC has been under pressure over the last three days and it has also pulled down altcoins along with it. Along with the inflation data, some analysts believe that geopolitical factors such as the Ukraine crisis are weighing up on the market.
However, Bitcoin proponents believe that it is still less risky to hold Bitcoin against other asset classes. As per the Bloomberg report, Bitcoin miners have been selling their holdings recently. The net Bitcoin miners’ holdings have turned negative since February 5: “The turn in the metric, or the net change of miner balances over a trailing 30-day window, shows that miners have sold their coins in a possible sign a shakeout of less-efficient operators is coming“.
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