Last week JPMorgan released a report pointing out that only a share of around 5-10% of all outstanding bitcoins were traded in the last year.Last week, JPMorgan made several news stories in the journalistic sphere of bitcoin, it seems that the top echelon of the institution instructed its strategists to attack the cryptocurrency. This is an attempt to scare its customers into selling them, while the bank quietly builds its own cryptographic fund. Perhaps this strategy is questionable, but the argument used by JPM is recurrent in discussions about bitcoin and should be discussed. The bank mentions that "bitcoin is not liquid enough to be successfully implemented with legal tender in El Salvador."The report explains that “daily payment activity in El Salvador would represent ~4% of the volume of recent transactions on the network and more than 1% of the total value of tokens that were transferred between wallets last year”, which would mean a limitation on its potential as a medium of exchange. What JPM has discovered is that bitcoin fluctuation can be as little as 5%, if not less. Discussing bitcoin's daily trading volumes, the bank notes that a large fraction of Bitcoin is locked in illiquid addresses (liquidity sinks), “with more than 90% not changing hands in over a year.” For example, an asset with a market value of $600 billion, it has a float of just $30 billion. This data is seen from different perspectives, as while it means a lack of liquidity, it also means that no whales sold bitcoin when it reached its highest point of $65,000. And if they didn't sell before, they certainly won't sell now, indicating a continuation of the cycle. All of this indicates that we are in the phase of “shaking our weak hands” and whale accumulation. And once the new generation of whales has bought enough, that's when the next highest squeeze will happen, sending the cryptocurrency and its peers to all-time highs. Because if there's one thing that's too easy to do with an asset whose float is as low as bitcoin's, is manipulating it as a handful of big players want.To stay up to date, follow the QR Capital on Instagram and on Twitter.The content Only 5% of all outstanding Bitcoins were traded in the last year appears first on BlockTrends – Blockchain | Investments | Savings.Buy and sell Bitcoin and other cryptocurrencies at Coinext
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Only 5% of all outstanding Bitcoins were traded in the last year
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