Nearly Half Of All Bitcoin Hasn't Moved An Inch In 2 Years: Ark Invest Pegs This Level As Strongest Support

Nearly half of all Bitcoin BTC/USD in circulation hasn't moved an inch in the past 2 years, as per data from Ark Investment Management's monthly report.

What Happened: According to Ark, Bitcoin's holder behavior over long-term time horizons is "stronger than ever."

The percentage of the Bitcoin supply that had not moved for two years or more closed the year at 47% — an all-time high.

Even though roughly $700 was the lowest price level where most Bitcoin in existence was mined and transacted in the early years of the Bitcoin network, Ark Invest believes the range of $16,000 to $17,500 to be the strongest area of support due to a large amount of Bitcoin being exchanged (7% of total supply) in this price range. 

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The recent plunge in Bitcoin prices has been attributed to three key factors, as per Ark:

1. Significant outflows of exchange-held Bitcoin following the collapse of FTX 
2. A high level of capitulation among traders in the face of losses; and 
3. Accumulation of Bitcoin by buyers during the selloff. All of these factors have contributed to high amounts of Bitcoin being transacted at bargain prices.

The report noted that Bitcoin's monthly volatility fell to 25% at the close of 2022, its lowest since late 2020. After a brief spike during November, December saw a welcomed dip, indicating a period of relative stability unseen since mid and late 2020 and late 2018. 

Ark CEO Cathie Wood in November stood by her prediction that Bitcoin would reach $1 million by 2030. 

Price Action: BTC was trading at $17,429.23, up 1%, in the last 24 hours, according to Benzinga Pro.

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