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 past two years. In addition, the percentage of supply that was last active more than two years ago has reached an all-time high of 53%.
Dormant BTC jumped in 2023 after nearly two years of hovering around 45%. This indicates that those who purchased more than two years ago are hesitant to sell.
Many people who bought during the previous bull market are still underwater. After all, Bitcoin is still trading nearly 60% lower than when it peaked in November 2021.
On April 10, industry influencer Anthony Pompliano tweeted the data. Furthermore, he discovered that nearly 29% of all Bitcoin in circulation has not moved in the last five years. “That’s over $150 billion in market capitalization that hasn’t moved in half a decade,” he explained.
According to Glassnode data, just under 15% of all Bitcoin in circulation has not moved in a decade. More than 2.7 million BTC have been lost, forgotten, or are 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 had reached an all-time high of 45.5 million. “This suggests that the level of on-chain activity is currently improving,” the report said.
Furthermore, it reported that Bitcoin inflow volumes to exchanges had just reached a monthly low. This also implies that more holding and self-custody are taking place. Large inflows to centralized exchanges frequently indicate an increase in selling pressure.
When inflow volumes are as low as they are now, the opposite may be true. Bitcoin prices rose a couple of percent during the Asian trading session on Monday morning. As a result, BTC reached a five-day high of $28,500 before slightly falling back.
At the time of writing, the asset was selling for just under $28,300. For the past three weeks, BTC has been consolidating in a narrow range-bound channel. Previous extended periods of consolidation have resulted in a large move, and on-chain data suggests an upside trend reversal this year.
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