Over 50% of Bitcoin Supply Has Remained Dormant for Over 5 Years
A recent analysis by James V. Straten reveals that more than 50% of the Bitcoin supply in circulation has remained dormant for at least five years. These coins are held by long-term holders (LTHs) who have not sold or transferred their Bitcoin for a significant period of time.
The longer an investor holds onto their coins, the less likely they are to sell or transfer them. LTHs are known for their strong conviction and rarely sell even during periods of high profits or losses.
Bitcoin Supply Aged More Than 5 Years Is Only Continuing To Grow
The chart below shows the percentage of the circulating Bitcoin supply that falls into the category of coins aged more than five years:
[Insert Chart]A portion of this supply is not dormant because investors are intentionally holding onto it (known as HODLing), but rather because these coins have been lost. However, there are also genuine long-term holders within this segment.
This locked-away supply, whether lost or HODLed, has been steadily growing over the years. This can potentially have bullish effects on the price of Bitcoin due to supply-demand dynamics, although these effects may only be noticeable over long periods.
BTC Price
After retracing from recent highs, Bitcoin has been consolidating around the $27,500 mark in recent days.
[Insert BTC Price Chart]Hot Take: The Strength of Long-Term Holders in the Bitcoin Market
The significant portion of the Bitcoin supply that has remained dormant for over five years highlights the strength and conviction of long-term holders in the market. These holders, whether intentionally HODLing or due to lost coins, contribute to the decreasing availability of Bitcoin for trading.
As this supply continues to grow, it can potentially have positive effects on the cryptocurrency’s price in the long run. The unwavering commitment of these long-term holders reflects their belief in Bitcoin’s value and its potential for future growth.
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