Bitcoin Continues to Get Closer To Being a Safe Haven Asset
Many people consider Bitcoin a store of value and they look for opportunities to buy when its price declines. This is one of the reasons it is called digital gold. Bitcoin is likewise hard money with a limited supply and despite being digital, it does not encounter the challenges faced by gold.
The cryptocurrency is becoming scarcer every day even as its inflation has declined after the completion of its block reward halving. Additionally, hodlers’ attitude shows that they have a macro outlook regarding what the future holds for Bitcoin.
According to HODL waves from Unchained Capital, the age of 21 percent of all Bitcoins is 5 years or older; that is, the owners had not moved them in more than 5 years until March this year. The total number was 16 percent in 2007 and has surged to 21 percent since then. The amount of BTC in circulation as of today is one percent or less, meaning that investors are bullish on Bitcoin and would prefer to hodl it.
We can determine the number of Bitcoin moved through its price. According to Glass Node’s data, 10.9 percent of Bitcoin was last moved when the price was $10k. When the price of Bitcoin was quite volatile in March and April, it dropped from $8k to $3.8k and 46.6 percent of Bitcoin was moved when the price was between $5k and $10k. When the price of Bitcoin was in the range from $15k to $20k, 1.7 percent of Bitcoin was moved.
After Bitcoin’s successful halving, its S2F ratio is now in the range between 50 and 60, meaning that the S2F ratio is moving closer to Gold’s and could soon be more than that. In conclusion, these show that BTC continues to get close to being a safe haven asset and a store of value.