Key Points:
- Bitcoin’s supply which has not moved for more than 5 years, has reached a new record high of 28,441%. This represents a significant increase from the previous high of 27,983%, recorded in January 2021.
- Bitcoin’s price has been highly volatile in recent weeks, with the cryptocurrency experiencing several significant dips and rebounds.
According to data from Glassnode, the percentage of Bitcoin’s supply that has not moved for more than 5 years has reached a new record high of 28,441%. This represents a significant increase from the previous high of 27,983%, recorded in January 2021.
The metric tracks the percentage of Bitcoin’s total circulating supply that has remained dormant for at least 5 years. This suggests that long-term holders are continuing to hold on to their BTC, despite the recent market volatility and fluctuations in price.
Some analysts believe that this trend is a bullish sign for the future of Bitcoin, as it indicates that investors are confident in the long-term prospects of the cryptocurrency. They argue that the increasing number of “holders” reduces the available supply of BTC in the market, which could lead to a supply crunch and a potential increase in price.
Others, however, caution that the metric does not provide a complete picture of the market dynamics. For example, it is possible that some BTC holders are not active traders and do not move their coins frequently, rather than holding them with a specific long-term investment strategy.
In addition, it is essential to note that Bitcoin’s price has been highly volatile in recent weeks, with the cryptocurrency experiencing several significant dips and rebounds. Some long-term holders may take advantage of these price swings to realize profits or adjust their investment strategies.
Despite these factors, the increasing percentage of dormant BTC supply suggests that many Bitcoin investors remain confident in the cryptocurrency’s potential. This could bode well for the future of Bitcoin, particularly as institutional adoption of the cryptocurrency continues to grow.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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