A new survey of volatility in global financial markets suggests that only one out of four Bitcoins has been moved between online addresses over the past six months. Is this a liquidity problem?
This is a major change since the end of 2017.
According to data compiled by researcher coin metrics, this has been a major change since the late 2017, when nearly half of all bitcoins were active. Even during the record price drop at the end of last year, Coin metrics says that the largest crypto currency has not been operating at this low level since 2015. Nic Carter, co-founder of coin metrics, based in Cambridge, says We’re in a recession.
According to Coin metrics, nearly 50 per cent of Bitcoin, including newly issued crypto currencies, dropped by about 60 per cent in the last 12 months in late 2017. Especially given that the price of BitCo rose to a level of almost $ 20,000 at the end of last year, the decline in operations is even more surprising. Many of these investors hoped to make a quick profit, but as prices fell, they had to keep the Krypto money. It is stated that many will sell them if the price increases again in bitcoin.
Gil Luria: “this does not mean that there is a liquidity problem.”
Historical data shows that a large amount of bitcoin has never traded. According to Coin metrics estimates, up to 40 percent of all Bitcoins are stored in cold storage. The company says the other 25 to 35 percent are semi-liquid, and that is why in the long run, the hoders are only in bull runs. During price declines, coin metrics is hit that only 30 percent of Bitcoins are available.
According to data from CoinMarketCap, the daily trading volume has fallen by about 80 per cent from the January summit, but is still shifting the hands of about 4 billion dollar Bitcoin. Da Davidson & Co.Gil Luria, Corporate Capital director from Turkey, said::
This does not mean that there is a liquidity problem. A volume of 4 billion dollars a day means that almost every trader in Bitco can close all positions within a trading day.