By Tuesday, Bitcoin’s (BTC) fast surge in the second part of March appeared to have cooled. However, a key measure of retail interest may indicate that the world’s largest cryptocurrency will continue to grow in value.
The coin was last trading at roughly $46,000, having gained 17% in the previous 30 days. It is now trading near its 2022 high, but is still 31% off its all-time high of $46,784.
“Weak hands” could indicate significant Bitcoin profits.
According to Twitter user @0xCryptoChan, the ratio of BTC tokens that have remained unchanged on the chain to total BTC circulation has been drifting near record lows. The ratio is referred to as the paper hands or weak hands indicator, and it indicates the level of retail interest in the market, which is currently at an all-time low of less than 25%.
However, the ratio reclaiming the 25% level has historically signalled a big rebound in BTC. Between late-2019 and 2021, the last time this occurred, BTC’s price increased 11.3 times. Prior to it, between early 2016 and 2018, the price of BTC increased 59.6 times.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
