Bitcoin long-term holders keep growing as price rises
Bitcoin’s (BTC) on-chain data has recently revealed a significant milestone in the history of cryptocurrency. Glassnode data shows that the amount of bitcoin supply last active over 10 years ago has reached an all-time high of 2,673,268 BTC.
In addition, the percentage of the supply that has been inactive for at least five years has also reached an all-time high, currently sitting at 28.468%.
This information is crucial for various reasons, as it highlights the long-term holding mentality among bitcoin investors and provides insights into the overall health of the bitcoin ecosystem.
The data indicates that many bitcoin holders are adopting a long-term investment strategy. This approach, often called “HODLing” within the cryptocurrency community, involves holding onto the digital asset despite market fluctuations and short-term volatility. By doing so, these investors express confidence in bitcoin’s long-term value and potential as both an investment and a store of value.
The increasing dormancy of bitcoin supply can be seen as a positive sign for the market. Dormant coins reflect a reduced likelihood of sell-offs, which can contribute to overall market stability. This trend may indicate that many investors believe in the long-term prospects of bitcoin and have chosen to hold their assets in anticipation of future growth.
The record dormancy levels within the bitcoin ecosystem suggest an overall market maturation. As more investors adopt a long-term holding strategy, this may lead to a more stable environment, attracting institutional investors seeking exposure to digital assets.
Additionally, the data may provide security to current and potential investors. It shows that a large portion of the bitcoin supply is held by those who have faith in its future performance. This confidence in the market may encourage new investors to enter the space and further solidify bitcoin’s status as a legitimate investment and store of value.
The all-time high in dormant bitcoin supply is a testament to investors’ long-term confidence in the cryptocurrency. As the market continues to mature, the increasing dormancy of bitcoin supply could help create a more stable environment for current and potential investors. In the ever-evolving landscape of digital assets, these onchain data points offer valuable insights into the health and future prospects of the bitcoin ecosystem.
The development follows a recent report that over 40,141 bitcoin were moved in a single transaction on March 16, 2023 — showing once again how the introduction of BTC improved large settlements.
