Unmoved Bitcoin Hit All-Time High While Big Players Accumulate

One of the most interesting Bitcoin data points I have read this summer is that the number of unmoved Bitcoin (BTC) has reached an all-time high. 

That means that convinced Bitcoin HODLers are doing what they do best: they’re HODLing. 

More specifically, it indicates that an increased number of Bitcoin investors who have accumulated in the past are holding onto their coins in anticipation of a potential future increase in the value of Bitcoin. 

To me, that’s (yet another) very bullish signal for Bitcoin. 

At the same time, we also saw a decrease in Bitcoin held on exchanges. In fact, the amount is at the same level as back in 2018. In the chart below, you can see BTC exchange reserves plotted against BTC/USD, which shows that BTC stored on exchanges has dropped significantly since 2020.

What does that mean? 

It means more and more users understand the difference between owning paper Bitcoin, an IOU by any exchange, versus actually self-custodying thier own coins. 

Always remember: Not your keys, not your coins! 

Bitcoin held on exchanges are not your BTC. Only the Bitcoin you hold in a self-custody wallet are your Bitcoin. 

Last but not least, there was an increased demand for Whale purchases. For most of August, an unknown wallet was accumulating Bitcoin like crazy. In the end, the wallet was identified to be owned by the online broker Robinhood. They stacked $3 billion worth of Bitcoin. 

I’m sure we’ll see more of these purchases by big companies or institutions in the future. The first deadlines for all the Bitcoin ETFs are approaching soon, and with the recent news surrounding Greyscale and their win against the SEC, the sentiment around Spot Bitcoin ETFs is increasingly positive. 

Whether these companies and institutions are preparing for Bitcoin ETFs or have other reasons to accumulate so fast, it takes more and more Bitcoin out of circulation. 

Combine that with the recent price drop, and you see all these institutions locking up more Bitcoin. 

With this, Bitcoin could become less liquid and, as a result, could potentially become more volatile as there would be less BTC to trade, and large trades could move the price quite significantly. 

Luckily for most investors, this isn’t an issue they have to face on a daily basis. As you’ve seen above, there is a majority amongst us who HODL and think long-term. That doesn’t mean we’ll see short-term craziness and significant price drops. 

Whether or not institutions like BlackRock, Fidelity, or Robinhood will profit from these dips and accumulate at the same pace remains to be seen. However, it’s good to see such an aggressive push into Bitcoin by large companies and to read about institutional support for Bitcoin. 

Biometric Data-Tracking WorldCoin’s Price Tanks After Launch Following Pushback from Lawmakers & Privacy Advocates

WorldCoin, a new cryptocurrency handed out for “free” to individuals who are willing to give away their biometric data, officially launched in late July. 

You will have probably heard of it as it was all over social media. Every media outlet under the sun was reporting about it. 

Granted, it may have something to do with how WorldCoin launched and who’s involved in this project. Sam Altman, the guy behind OpenAI and ChatGPT, is part of the founding team and very vocal about his visions for WorldCoin. 

To get WorldCoin WLD tokens, people had to wait in line and scan their eyes with a dystopian-looking silver orb. Their biometric data would then be linked to an ID, and they could redeem some WLD tokens with it. The token’s price initially skyrocketed, and a lot of its user base came out of the Global South. 

Who says that WorldCoin will respect users’ privacy or sell that data? 

It appears that I’m not the only one with these thoughts. 

Just a few days after launching, Kenya’s government stepped in and suspended WorldCoin from being sold or eyes being scanned, mainly due to privacy concerns. 

This sparked a movement as other countries became vocal and announced committees and investigations into the project.

This news was enough to send the WLD token on a downward spiral. At one point, the token was 65% down from its all-time high. 

I reckon we’ll see more investigations and potential announcements by lawmakers and privacy advocates targeting WorldCoin, given the very evident risks it poses to its users. 

My Weight’s Dropping Faster Than the Value of Fiat Currency 🏋️

I previously wrote about my weight loss goal in April. The road to 185  pounds is challenging. However, I’m happy to report that I am down nearly 20 pounds over the summer. 

My current weight is 211.5 pounds. 💪 

While it does sound great, I could have lost a bit more. 

A crazy 4th of July with too much drinking, some traveling, and a vacation with the family held me back. I wish I would have lost a bit more, but I’m overall happy with the journey so far. 

Either way, I am continuing with my path to lose 10 pounds a month to achieve my final weight goal. If I manage to stick to the plan, I should get to 185 pounds by the end of November. 

Expect more updates soon, and make sure to hold me accountable if you see me slip up!

No Risk, No Fun (But Not in Crypto!) 📉

Recently, I had Samara Alpha Management’s Chief Risk Officer, Roy Tse, on the Proof of Words podcast. 

It was a fun conversation. We spoke about Central Bank Digital Currencies (CBDCs) and their potential impact on individual freedoms and governmental control, the evolving landscape of Bitcoin, its future role in global accounting, and the importance of due diligence and risk management in the crypto space. 

Tune in to learn more about these topics! 

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Your stacker in sats,

Patrick Lowry