The Rise of Dormant Bitcoin: What It Means for Crypto Investors
Did you know that almost 69% of circulating bitcoin have been inactive for at least a year? This data, tracked by blockchain analytics firm Glassnode, reveals a persistent trend of holding onto the cryptocurrency for long-term gains. Here are the key takeaways:
- 13.3 million bitcoin, worth $388.7 billion, have been dormant on-chain for at least a year.
- The percentage of circulating supply inactive for at least two years recently reached a record 56%, with 40% inactive for at least three years.
- Dormant coins represent those that have not been spent on-chain over a given period.
- The increasing number of inactive coins suggests a decline in available supply and the potential for a price rally, assuming demand strengthens.
- Analysts at Bitfinex believe this trend reflects a robust belief in Bitcoin’s long-term value and the potential for prices to rise.
It’s important to note that this metric overlooks the financialization of bitcoin, which includes investment vehicles like futures and ETFs. These alternative options allow investors to gain exposure to bitcoin without actually owning it, and they also impact the cryptocurrency’s price.
Hot Take: A Bullish Future for Bitcoin
The prevalence of dormant bitcoin suggests a strong belief in the cryptocurrency’s long-term value among investors. The scarcity of available supply, coupled with growing demand, has the potential to drive prices upward. While the market’s future remains uncertain, the prevailing sentiment is one of steadfast optimism. Whether you’re a long-term holder or considering entering the crypto space, it’s clear that bitcoin continues to be a force to reckon with.
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