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XRP Holders’ Attorney Identifies Positive Sign for Bitcoin’s Market Performance
In a recent observation, the attorney representing XRP holders has highlighted a positive sign for Bitcoin, the largest cryptocurrency by market capitalization. According to the attorney, the fact that approximately 80% of Bitcoin has remained dormant suggests that individuals are not actively selling their holdings.
The attorney, Deaton, has expressed interest in monitoring the behavior of this percentage as Bitcoin’s price reaches $50,000 and potentially even $75,000. He believes that the lack of movement in a significant portion of Bitcoin indicates a reluctance to sell among investors.
This sentiment aligns with comments made by renowned investor Stanley Druckenmiller, who stated that during previous price plunges, 86% of Bitcoin holders at $17,000 did not sell their BTC when prices dropped to nearly $3,000.
Additionally, on-chain analyst Will Clemente pointed out that despite Bitcoin’s recent price surge, there has been a continual increase in the amount of supply that remains inactive for at least a year, suggesting long-term holding strategies among investors.
The emergence of spot Bitcoin ETF applications, led by asset management giant BlackRock, has contributed to the recent rally in BTC’s price, pushing it from $25,000 to over $31,000, marking new yearly highs.
Glassnode, an on-chain analytics firm, analyzed the market and noted a stable equilibrium around $26,000 before the price rally. This indicates a shift in investor psychology away from a bearish outlook towards considering breakeven levels as an opportunity to build positions rather than seeking immediate liquidity.
At the time of writing, Bitcoin was experiencing minor losses but remained above the $30,000 threshold, trading slightly higher at $30,226 within the last 24 hours.
Deaton, maintaining his optimistic outlook on Bitcoin’s price, recently asked his Twitter followers whether they believed Bitcoin’s market valuation could someday reach half that of gold. If this were to happen, Deaton suggests that Bitcoin’s price could reach $300,000, nearly ten times its current value.
This article was originally posted on U.Today
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