More than 11.5 million Bitcoin hasn't been moved in over a year

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Despite Bitcoin's incredible 85 percent price increase, more than 11.5 million Bitcoin hasn't been moved in over a year.

Earlier this year it seemed that Bitcoin could do no wrong and that it was up for a historic rally that would put its 2017 boom to shame.

Bitcoin's latest slump seems to have challenged most of these predictions - even the staunchest Bitcoin maximalists were taking back their words and putting out more bearish forecasts.

One analyst is sticking by his extremely bullish prediction for Bitcoin.

Crypto analyst and Bitcoin advocate Rhythm Trader believes we should be looking at those that hold Bitcoin rather than those who sell it to determine the true state of the market.

At the end of October, Bitcoin celebrated a major network milestone - its 600,000th block was mined, putting its circulating supply at around 18 million BTC. With a supply capped at 21 million coins, its scarcity is becoming more apparent with each passing day.

Back in November, a report from CoinMetrics showed that Bitcoin's circulating supply was significantly smaller than it should be, as it is estimated that there are more than 1.6 million coins that are probably lost forever.

With Bitcoin's actual circulating supply pushed down to 16.4 million, having 11.5 million dormant coins mean that less than 4.9 million coins moved addresses or changed hands in the past year.

Even a much more modest estimate on how many coins are being kept as long-term investments makes an extremely bullish case for Bitcoin.

If we assume that even half of the 11.5 million dormant coins are lost forever, it would mean that there are still more than 5.7 million of them being held with no intention of selling any time soon.