As we’ve established, most trading in bitcoin—like everything else about it—is fake. But even if now really is finally the time to buy, or pretend to buy, on account of its most recent plunge, there’s apparently no sport in trying to manipulate the imaginary anymore.
In the last week of November, with bitcoin trading at around $7,000, only about 14% of the 18 million bitcoins outstanding were actively traded, according to data from research firm Flipside Crypto. That is down from more than 50% in October 2018…. About 9.1 million bitcoins, representing about 51% of those outstanding, haven’t changed hands in at least six months, according to Flipside. About two million of those bitcoin haven’t moved in more than two years.
You can probably guess where this is going….
“A lot of people are sitting at the moment,” said Eric Stone, the head of data science at Flipside. But that much bitcoin sitting idle is like kindling, he suggested. “It can be the precursor to dramatic shifts.”