Bitcoin ain't moving.

It's a new record!

Half of Bitcoin's supply hasn't changed hands in 2+ years.

Um. Ok. Cool.

'Bitcoiners love Bitcoin?' Is that the headline?

Well yeah, but it's not the key takeaway (that'd be like saying 'water is wet' and calling it a day).

Here's the 'why' to the 'what' of this news. Specifically:

Why it's important.

We've said it before, and we'll say it again now - Bitcoin is heavily backed by belief (and that's ok).

In fact, it seems to be a hall-mark of many 'store-of-value' investments.

Just look at gold - it's one of humanity's oldest investment vehicles...and it's heavily backed by belief.

Don't believe us?

Meet: rhenium. It's rarer, and has more industrial uses than gold...but gold is 40x more valuable than rhenium.

Why? Because we collectively believe gold's value extends beyond its industrial utility and scarcity (rhenium doesn't have the same brand power).

Bitcoin is like digital gold.

Sure, it has utility, in that it can execute dirt cheap cross-border payments and bank the un-banked.

But that's not what's driving most of its price appreciation. Nope, it's belief.

Belief in Bitcoin's security, scarcity, and most importantly: its ability to act as a store-of-value.

We all know Bitcoin to be highly secure (it's never been hacked), we all know it's scarce (there will only ever be 21M Bitcoins made).

We all believe it to be a store-of-value?

Eh...kinda.

You see, typically, when the crypto market crashes - long term Bitcoin holders (of 2+ years) tend to sell their BTC off.

It happened in 2014/15 and 2017/18:

(We're looking at the yellow line here)

But did you notice what happened throughout the 2022 bear market, when everything went to hell?

The amount of long term holders didn't decrease - they increased (to all-time-highs)!

Which indicates that belief in Bitcoin's ability to act as a long term store-of-value, is higher than its ever been.

And the greater the collective belief, the more valuable it becomes.