Dormant Bitcoin Network implies “dramatic change” coming in, but in which direction?

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If you’ve been following the bitcoin and cryptocurrency space over the past few years, you’re probably familiar with the term “HODL”, a misspelling of the word “hold”, HODL is a long-standing meme used by investors from industry who believe that BTC will appreciate over time.

According to a recent report by the Wall Street Journal, HODL is more than a meme, it’s a reality.

The outlet reported Friday that according to cryptocurrency analytics firm Flipside Crypto, 14% of the 18 million BTC in circulation was actively traded in the last week of November, a statistic down from 50%. compared to October 2018.

Additionally, the number of Bitcoin transactions made each day fell to “about 307,000 transactions, according to data from Blockchain.com. That’s down from 370,000 in the spring.

The trend of market inactivity that these metrics show has been corroborated by top blockchain analytics site BitInfo Charts, which recently observed that 11.58 million Bitcoin – over 50% of all cryptocurrencies in circulation, which are valued at more than $70 billion at the time of writing this – hasn’t budged in over a year. This also means that less than 6.8 million BTC changed hands in the last 12 months.

Eric Stone, Head of Data Science at Flipside, had the following to say about the high number of “dormant” Bitcoins:

“A lot of people are sitting down right now… This can be the precursor to dramatic changes.”

But this begs the question, where could this drastic change take Bitcoin?

Related Reading: Eat My Shorts: Everything You Need To Know About The Bitcoin Bart Pattern

Where Will “Dramatic Change” Take Bitcoin?

According to a number of analysts, the imminent change will be largely positive.

Hans Hague, senior quantitative analyst at Ikxigai, recently noted that there is a confluence of reasons why he thinks Bitcoin remains in a long-term uptrend in adoption and therefore price.

According to previous reports from this outlet, the confluence includes: Deutsche Bank, the world’s 17th largest bank, recently observed that its estimates predicted that the number of individuals using Bitcoin and the cryptocurrency would further appreciate 500% over the next decade; the CEO of Bakkt has just become a US senator, which means that Bitcoin could have its own cheerleader in Washington; and the idea that BTC is entering a long-term buy zone.

Related Reading: Bitcoin CME Futures Gaps Filled With 95% Certainty, But Trading Them Is Risky
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