Bitcoin’s Second Coming, Is 2020 The Year?

It is indicated that the Bitcoin unrealised transaction output means “investors are staying put despite being at a loss,” due to there being fewer transactions since earlier this year when the price of the leading cryptocurrency hit $14k and has since slumped down to the $7k range. At least, that’s according to Glassnode, the crypto analytics company based in Berlin.

1/ UTXO metrics suggest that investors are staying put despite being at a loss.

After #BTC's local top in June, fewer transactions require less UTXOs to be created.

That in combination with the declining price, caused the number of UTXOs in a loss to remain at ATH since weeks. pic.twitter.com/nGctzxaYl9

— glassnode (@glassnode) December 15, 2019

Support has been shown for the Glassnode data by many commentators including BitInfo Charts, who recently found that almost 11.6 million Bitcoin — more than 50% of the flagship’s circulation — has not really shifted in 12 months. On top of this, it means that less than 6.8 million Bitcoin has been moving around the crypto space over the last year.

Furthermore, there are a lot of investors in this industry that are HODLing their coins and have yet to move them elsewhere. This comes despite the near -100% performance over the course of 2019, suggesting a pretty big positive sentiment from people in the space.

Before we finish though, it’s worth saying that we aren’t financial investors and this isn’t financial advice. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!