54% Of Bitcoin Supply Inactive Since 2 Years Despite 500% Price Jump

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As a seasoned crypto investor with a decade-long journey through the digital asset landscape, I find the current trend of Bitcoin inactive supply intriguing and reassuring. Having weathered numerous market cycles and witnessed the ebb and flow of various altcoins, I can attest to the resilience and conviction of long-term HODLers.

Over half of all Bitcoins haven’t been transferred for over two years, even though the value of Bitcoin has noticeably increased during that timeframe.

Bitcoin Inactive Supply Trend Suggests HODLing Behavior Remains Strong

As an analyst, I’ve recently delved into the latest insights shared by Rafael, co-founder of Glassnode, regarding the evolving patterns within the different bands of Bitcoin’s Active Supply. The “Active Supply” refers to the segment of Bitcoin’s circulating supply that has participated in at least one transaction over a specified timeframe.

Here’s a chart provided by our analyst, displaying fluctuations in the active Bitcoin supply across various age groups over the past two years.

Looking at the graph, it appears that the younger age groups such as 1 month to 3 months and 3 months to 6 months are experiencing growth currently, indicating that the recent surge in price might be causing an increase in supply within those brackets. Conversely, older bands seem to be moving horizontally, suggesting a lack of significant change or movement in those age groups on this particular indicator.

The diagram presents the accumulated breakdown of active supply groups ranging from one to two years, with each group layered upon the other, so as to illustrate the proportion of the overall supply that each group represents.

As a researcher studying cryptocurrencies, it seems that approximately 46% of the active supply has been traded or moved within the last couple of years, leaving more than half untouched.

Currently, the two-year limit is set for November 2022, marking the end of the previous Bitcoin bear market’s downturn. With a look at the Active Supply trend, it appears that those investors who purchased around or before the bottom have generally chosen to hold onto their investments (HODL).

It’s worth mentioning that the asset’s value increased significantly by over 500% since then, and Glassnode’s co-founder emphasizes that HODLing (holding onto an investment for a long time) is not just a joke or meme.

It’s statistically probable that investors who have held their coins for extended periods (over two years) are less inclined to sell. Given that around 54% of the total supply has remained static for this duration, it seems reasonable to expect these holders will continue to keep their coins in the coming days.

Meanwhile, it’s worth noting that the Deribit exchange has recently witnessed substantial Bitcoin withdrawals over the past 24 hours, according to an analysis shared on the CryptoQuant Quicktake platform.

As an analyst, I’ve observed that a total of 31,000 BTC have been moved by our platform users to their personal wallets. This could indicate that investors are accumulating more Bitcoin, a potential positive signal for the asset’s value in the market.

BTC Price

Currently, Bitcoin’s price hovers near the long-anticipated $100,000 threshold, with trades taking place at approximately $98,900.

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2024-11-23 18:40