Most Bitcoins Are Held in Accounts Where They Are Not Traded Despite Recent Negative Crypto News, Holders Expect Bitcoin Value to Increase Dramatically The Giant Currency ...

  • Most Bitcoins are held in accounts where no transactions are taking place

  • Despite recent negative crypto news, holders expect Bitcoin value to surge

  • Huge amounts of money are entering the Bitcoin market

  • How can a market facing legal turmoil thrive?

According to the illiquid supply change indicator, illiquid wallets holding crypto tokens, especially Bitcoin, were found to control the majority of Bitcoin supply. The illiquidity trend suggests that hodlers predict that the value of Bitcoin will increase in the near future.

While recent major crypto news has included legal complications surrounding the market’s largest exchanges and lenders, investors and analysts believe Bitcoin is set to have a bright future.

Illiquid wallets control the market

The illiquid supply change indicator proposed by Glassnode highlights the amount of cryptocurrencies held in non-exchange wallets. The tool compares the figures on any given day with the figures on the same day in the previous month.

One of the platform’s main metrics shows that illiquid wallets hold the majority of crypto tokens on the market, especially Bitcoin. In addition, the platform shows that in the past four weeks, illiquid wallets have collected a record amount of Bitcoin. Illiquid wallets now hold more than $300 million worth of Bitcoin. In the past few weeks alone, these wallets have collected more than 9,215 Bitcoins.

Given all the negative news surrounding the crypto market, why would Bitcoin holders hold on to their coins?

bad news

To sum up the troubles surrounding the crypto market, one must look at the SEC and crypto exchanges, namely Binance and Coinbase.

  • Binance, the world’s largest cryptocurrency exchange, is facing 13 lawsuits filed by the U.S. Securities and Exchange Commission alleging crimes such as evading U.S. regulators, wash trading and commingling customer funds. The lawsuits forced Binance.US to halt all U.S. dollar trading and suspend over-the-counter trading.

  • Binance has also shown signs of exiting the European market; deregistering from Cyprus, the Netherlands, and the United Kingdom.

  • Coinbase, the largest cryptocurrency exchange in the United States, is in a legal battle with the Securities and Exchange Commission, which claims the exchange is trading in “unregistered securities.”

  • Another U.S.-based cryptocurrency exchange, Ripple, is also allegedly trading “unregistered securities,” according to the SEC.

good news

There must be a valid reason why Bitcoin holders are optimistic about the future of crypto tokens. Here are some of the main reasons:

  • Bitcoin has never been at the center of any of the above lawsuits. This shows an ominous future for altcoins, but a bright future for pioneer cryptocurrencies.

  • SEC Chairman Gary Gensler has repeatedly confirmed that he does not consider Bitcoin to be a security, but rather a commodity, which could protect Bitcoin from legal challenges from the SEC regarding crypto token trading.

  • Binance has just announced the integration of the Bitcoin Lightning Network, which will not only speed up the transaction process but also require fewer fees per transaction.

  • Major asset managers Fidelity and Blackrock will soon pump a large amount of money into the Bitcoin market, which could send the price of Bitcoin soaring.

Hodlerus might be on to something

Not only might Bitcoin be the sole survivor of crypto’s ongoing battle with the SEC, given all the financial, technical, and legal factors involved, but it’s more than likely that demand for it will soar as the world’s richest companies are about to dominate the market.

Perhaps the goal behind the SEC’s fight with the crypto market, and the corporate focus on Bitcoin, is to eliminate all altcoins and make Bitcoin the only viable digital currency in the United States.