Bitcoin Dormant Supply Increases as ‘Hodlers’ Refuse to Sell
On May 22, on-chain analytics provider Glassnode reported that a large portion of the Bitcoin supply remained dormant in individual investors’ wallets. It is also stated that several key age groups are currently at all-time highs.
As the hodl narrative becomes more prevalent, the amount of Bitcoin held for more than a year continues to climb to new highs. “The excellent levels of HODLing that have been seen across the supply continue, with high coin inactivity supporting very low levels of on-chain volume throughput.”
The following chart shows hodling increases across all bands, with the most dramatic increase occurring in the bands that were active two years ago. These coins were accumulated at the beginning of 2021 at the start of the bull market.
Additionally, the supply of long-term holders, defined as BTC held for more than 155 days, has hit a new all-time high of 14.46 million BTC. This is a new record for the supply of long-term holders. “This reflects coins earned immediately following FTX’s failure to LTH status,” Glassnode notes. “This reflects coins earned immediately after the FTX fiasco.”
Additionally, the Bitcoin activity metric, which compares hoarding cryptocurrency to spending it, has hit its lowest level since December 2020. This further proves that holding one’s holdings is today the most common form of market activity.
“The continued decline in Liveliness reaffirms that HODLing is undoubtedly the key market dynamic in most of the current supply.”
Unchained published a statement on May 23 confirming the consensus that Bitcoin will not be moved. It found that a staggering 68.13% of Bitcoins had not changed hands in over a year.
