Bitcoin Holders Show Strong Conviction as Inactive Supply Hits Record 70%

Recent data analysis brings to light an extraordinary development in Bitcoin’s circulating supply. A significant 70% of the supply has remained untouched in transactions for the past year, establishing a record high for supply last active over one year. It seems like those holding Bitcoin don’t want to sell, especially not at the current prices.

Bitcoin Supply at Its Peak

In a crypto landscape marked by volatility and macro uncertainties, Bitcoin holders are displaying unwavering confidence. The percentage of supply dormant for two, three, and five years has simultaneously reached lifetime highs. 

This signals that long-term investors are holding tight to their Bitcoin, even as its value soared to $37,000 this year. Meanwhile, the percentage of Bitcoin’s circulating supply that has remained inactive for at least a year has surged to a record 70.35%, surpassing the previous high of 69.35% in July.

This is the first time in Bitcoin’s history that we have exceeded 70%. Think about how significant this is – nearly 3 out of 4 bitcoin in circulation did not move despite Bitcoin’s rise from $15,700 to approximately $37,000.

Long-Term Investors Unfazed by Market Volatility

Despite Bitcoin’s price doubling to $37,000 this year, the data indicates that long-term investors are holding strong to their assets. The percentage of supply inactive for two, three, and five years has also hit lifetime highs, showcasing unwavering confidence among Bitcoin holders.

Bitcoin’s recent performance, more than doubling in value, hasn’t prompted these investors to sell. Meanwhile, Reflexivity Research suggests that the holders are not showing any intention of offloading their inventory at the current price levels or in the near future.

While these metrics paint a picture of committed HODLers, the landscape may shift with the growing financialization of Bitcoin through instruments like spot-based ETFs and cash-settled futures. As cryptocurrency enters new avenues, the dynamics of Bitcoin’s inactive supply might see changes influenced by evolving market trends.

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