New York-headquartered multinational investment management and financial services company Morgan Stanley has noted that Bitcoin trading is currently in a state of a deep freeze in its report.
A recent number of Bitcoin units haven’t moved or traded over the past six months. The share of unmoved supply currently stands at 78%. This is a greater percentage compared to the 2018 bear market. Back then, the share of unmoved supply peaked at 75%.
The Morgan Stanley report also says that nearly half of Bitcoin units haven’t transacted in more than a year.
Finally, the majority of those users who received Bitcoin over the past year and a half are still in the red.
Proprietary global macro trader Mark Dow, who is known as one of the most prominent Bitcoin bears, says that the fact that Bitcoin has such a high share of unmoved supply indicates “declining interest.”
Some cryptocurrency enthusiasts, however, reject the assumption that the aforementioned data is bearish for the world’s largest cryptocurrency. Trader Scott Melker has opined that Bitcoin is actually being increasingly adopted as digital gold. “It’s buyers holding their coins long term as a store of value,” he tweeted.
Bitcoin is trading at $20,661 on the Bitstamp exchange at press time after seeing an impressive two-day rally.