The reduction in Bitcoin assets only accounts for 25% of BTC transferred in the last six months

In the last six months, only 25% of Bitcoin that has not been extracted recently has been transferred to online digital portfolios.

In comparison, more than half of these Bitcoins were actively moved to addresses towards the end of last year. This is in line with a survey conducted by Coin Metrics. Prior to the famous price rise in December 2017, levels of activity involving Bitcoin credit transfers were as low as they are in 2015. According to Nick Carter, a co-founder of Coin Metrics, this revelation shows that the Bitcoin market is still pause .

In addition, Coin Metrics also indicated that the Bitcoin movement, exclusive to the newly extracted currencies, decreased from 60% in the fourth quarter of 2017 to 50% in the last 12 months. Currently, the number of existing Bitcoin tokens is 17 million. Because the original Bitcoin whitepaper expects Bitcoin token to be limited, it is expected that only 4 million additional Bitcoins will be generated through extraction.

Bitcoin's reduced activity is particularly surprising, especially given the flurry of new investors who bought the digital currency when its price reached a record level of $ 20,000. In particular, most of these investors bought Bitcoin with the hope that its price will increase, allowing them to sell for a profit. However, the bearish trend from the start of 2018 meant that these investors did not have a place to sell Bitcoins. The presumption is that if Bitcoin goes to another bullish run, most of them will sell.

The assumption above is not entirely true – after all, history indicates that a considerable part of Bitcoin is never exchanged. Specifically, 40% of Bitcoins are lost or stored in cold stores. In addition, Coin Metrics states that 25-35% of Bitcoins are held in a semi-liquid state, which means they are only traded during the uptrend when long-term investors sell to make profits. During the bear run, only 30% of Bitcoins are actively traded.

Furthermore, CoinMarketCap reports that Bitcoin makes a daily average of transactions worth $ 4 billion, despite the collapse of daily trading volume of 80% from January. This shows that Bitcoin still has sufficient liquidity.