Crypto & Blockchain News

More Than Half of All Bitcoins in Circulation Are Inactive

More than half of the Bitcoin supply is inactive, according to data from on-chain analytics provider Glassnode. The coins have been inactive for the last two years. Additionally, the percentage of supply that was last active more than two years ago has hit an all-time high of 53%.

Inactive BTC is surging in 2023 after almost two years hovering around 45%. This suggests that those who bought more than two years ago are hesitant to sell.

Many people who bought during the previous bull market were still underwater. After all, Bitcoin is still trading nearly 60% lower than when it peaked in November 2021.

On April 10, industry influencer Anthony Pomliano tweeted the data. Additionally, he found that nearly 29% of all Bitcoins in circulation had not moved in the last five years. “That’s over $150 billion in market cap that hasn’t moved in half a decade,” he explains.

According to Glassnode data, just under 15% of all Bitcoin in circulation has not moved in a decade. More than 2.7 million BTC has been lost, forgotten or in the hands of the world’s most disciplined investors, according to Pompliano.

Glassnode reported over the weekend that the number of non-zero Bitcoin addresses has reached an all-time high of 45.5 million. “This suggests that the current level of on-chain activity is improving,” the report said.

Moreover, it was reported that the volume of Bitcoin inflows to exchanges just hit a monthly low. It also implies that more arrests and self-restraints took place. Large inflows to centralized exchanges often indicate increased selling pressure.

When the inflow volume is as low as it is now, the reverse may be true. Bitcoin price rose several percent during the Asian trading session on Monday morning. As a result, BTC hit a five-day high of $28,500 before falling back slightly.

At the time of writing, the asset was selling for just under $28,300. Over the past three weeks, BTC has been consolidating in a limited restricted channel. The previous extended period of consolidation has resulted in big moves, and on-chain data points to a reversal of the uptrend this year.

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