While 60% of BTC is not moving, its ETH trading hits record highs

A report by the analysis firm Glassnote confirms that more than 60% of the total supply of BTC is safeguarded in the form of savings

Analysis firm Glassnote released a series of data suggesting that more than 61% of bitcoins on the open market have not budged in over a year , meaning that large investors have chosen to retain their assets rather than sell them. In addition, the report also ensures that the use of ERC20 token - from the Ethereum network - linked to BTC, has increased considerably.

As a recent Chainalysis report pointed out just a few days ago, more than 60% of BTC's supply has been flat for about a year. The new Glassnote report suggests that investors are viewing the top cryptocurrency by market listing as gold , in terms of global hedging.

The saving trend by large investors is also due to volatility in financial markets around the world and unprecedented political instability . Half of that period without major movements corresponds to this year, which began with severe geopolitical conflicts and then surprised with a pandemic that paralyzed the planet.

While the comparison to gold excites BTC fans, some commentators contend that these trends are neither optimistic nor indicative of strength for the cryptocurrency. The lack of points of sale , the high negotiation fees and the high volatility of its price, make any alternative use unattractive , in contrast to savings.

On the other hand, the Glassnote report glimpses the sharp increase in BTC trading on the Ethereum network. The tokens ERC20 linked to BTC reached a new high during the weekend.

In that sense, Antonhy Sassano -co-founder of ETHhub- published a series of tweets where he remarks that " there are more than USD 100 million blocked in such tokens ", which would represent a "bearish" signal for BTC.

"Tokenized BTC will always be a second-class citizen for ETH on Ethereum (you can't pay fees or bet with it)."  

In addition, he assured that it is also a bearish signal for the BTC network : “In the long term, Bitcoin depends on security fees. If most of the transaction volume occurs on Ethereum, then Bitcoin loses revenue / rate security. People can bypass the Bitcoin network and go directly to Ethereum for BTC exposure. ”

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Mickael Pasquier
Mickael Pasquier

Interested in the field of cryptocurrency and blockchain

Mickael Pasquier
Mickael Pasquier

Only Crypto

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