• On May 22, 2010 the first Bitcoin payment was sent for a pizza, which cost 10,000 coins. Today that pizza would be worth $365 million.
• Liquidity has been evaporating and exchange volume hit its lowest level of the year.
• Long-term Bitcoin holder supply has reached an all-time high and miner revenue from fees dropped to 7%.
The First Real-World Bitcoin Payment
On this day 13 years ago, the first real-world Bitcoin payment was sent by a programmer buying pizza in exchange for 10,000 coins. With around 2,854,700 Bitcoin in circulation at that time, this set Bitcoin’s total market cap at around 571 large pizzas. The price of one Bitcoin back on May 22, 2010 was 0.44 cents. Today that pizza is worth over $265 million but adjusted for inflation at an average rate of 2.5% per year it’s roughly $365 million.
Liquidity Evaporating and Exchange Volume Lowest Level of the Year
Recent data reveals liquidity is evaporating as exchange volume hits its lowest level of the year. This could indicate traders are not actively trading but instead holding their positions as prices remain stagnant or drop slightly over time. Furthermore, miner revenue derived from fees dropped to 7%, suggesting miners are relying more on block rewards than transaction fees for income.
Long-Term Holder Supply Hits All Time High
It seems long-term holders are continuing to hold their positions as supply from them has hit an all-time high according to recent data analysis by Santiment and Glassnode. Such “hodler” resilience indicates those who have held BTC for multiple years remain confident in Bitcoin’s future potential despite current market conditions and low volatility levels seen lately in BTC spot markets across major exchanges such as Coinbase Pro and Binance Futures/Spot Markets .
Luna Collapse One Year On: BTC Hodlers Show Resolve
One year after the collapse of short selling platform Luna Capital, BTC hodlers continue to show strong resolve despite enduring bearish sentiment throughout most of 2020 across crypto markets globally. While some shorts may have exited positions due to losses from Luna collapse and overall market downturns during 2020 Q4 — long term holders seem content with slow accumulation rates over extended periods of time – indicating they expect higher prices ahead in 2021/2022 when institutional capital continues to enter crypto markets en masse .
In conclusion we can see that despite current bearish sentiment across crypto markets globally — there remains strong investor confidence among long term holders in terms of slow accumulation rates over extended periods of time — indicating they expect higher prices ahead when institutional capital continues to enter crypto markets en masse in 2021/2022