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Bitcoin News: 36% Of The Total Bitcoin In Circulation Lost And 23% Held By Speculators

By Dennis Sahlstromaccess_time2 weeks agochat_bubble_outlineLeave a comment   

             Two research firms have released convincing data on the state of the top coin, Bitcoin. A report  from Chainalysis reveals that 36% of BTC in circulation is lost, likely  lost or unmined. Speculators hold 22% while a steady number of 30% are  investors. A few months ago, Chainalysis revealed news  about the BTC money supply. They found that long-term investors sold  around $24 billion of Bitcoin to new speculators between December 2017  and April 2018, and half of the selling happened during December. When  those who once held a financial product sell, the price falls and can do  so dramatically, which we saw earlier this year. However, the latest finding,  that includes data through August tells us that Bitcoin investors and  speculators have held their money over the summer. Chainalysis seem to  be mirroring tactics and methodology employed by the Federal Reserve,  the US central bank. “The Federal Reserve,” researchers noted, “for  example, tracks various measures of U.S. dollar money supply and their  relationships with important economic variables, including GDP growth  and inflation”. Chainalysis explains: “For emerging financial systems, such as the crypto-economy, building  an understanding of the underlying economic signals is a key factor in  empowering participants to make more informed decisions. People are  simply less likely to stay in and are less well served by, a market that  appears random and based on hype. If we can identify and monitor clear  signals —and those signals are logical— more people will feel  comfortable investing. That’s where data can play an important role”. Chainalysis updated  data shows that the market is getting more stable regarding each of the  monetary aggregates. They have all been steady over the summer months,  and especially the amount BTC held for speculation has remained stable  between May and August at around 22% of available Bitcoins.  The same is seen when looking at the amount held by investors; it has  remained stable around 30%. Furthermore, they argue that it is a sign  that the market is less sensitive to hype where news cannot push Bitcoin  price up or down in the same manner as before. Chainalysis concludes on  an up note, “As such, the first challenge of adoption — getting  cryptocurrency into people’s hands— has been overcome, but we are now  waiting to see what the next stage of adoption looks like”. Bitcoin holds 51,2% of the markets total capitalisation according to Coinmarketcap.com, and the total market cap for all coins hovers around $222 billion. Image Source: “Flickr”