Many Dormant Wallets Reactivated; Prices May Go Up
Since the beginning of this year, the cryptocurrency market has seen many dormant accounts and wallets being reactivated. Bitcoin funds have been moving in and between the wallets.
According to research, these accounts and wallets have been dormant for a couple of months. Some have even been dormant for more than 6 months at a stretch.
It is said that these accounts cater for 60% of the market’s Bitcoins that are in circulation.
This research was done by a cryptocurrency analysis company called Flipside.
HODLers Coming Back
According to the officials at Flipside, the market is seeing these accounts come back into play because long term investors are finally getting back into the market.
The reason people are coming back into the market now is that the market is becoming more stable and the volatility of 2017 is coming to an end.
Flipside CEO David Balter said that this year there is more potential for the cryptocurrency prices to swing positively. And that HODLers would no longer want to sit on the sidelines.
It is not only Flipside that has predicted positive swings for the market this year. It is rather all the analysts and enthusiasts of the market who believe that the cryptocurrency market will swing better this year.
This year even the Weiss Rating for the cryptocurrency market came out in favour of the market.
Apart from the community, a lot of research also point to the same. A similar research found that the dormancy of the accounts and the long downward trends are what caused the market to be so volatile.
While the market was not in the best place at the end of 2018, given multiple events that adversely affected cryptocurrency prices, this year has everyone’s hopes riding on it.
This year Bakkt, an ICE powered exchange, comes into play and more governments will get started on regulating the cryptocurrency market.
Apart from that, the fact that the these dormant accounts and wallets are being reactivated add to the hope for this year. Because with more than 85% of the circulating supply stuck up in dormant wallets, Bitcoin has been quite stagnant this year.
But now that these accounts ahve been reactivated. The market may be better placed for rise in price this year.Many Dormant Wallets Reactivated; Prices May Go Up Click To Tweet