The Surprising Increase in Dormant Bitcoin Supply despite New Highs: Whats Behind the Hesitation?

By Lola Coin Jun 26, 2023124Views

Despite Bitcoin reaching a new 2023 high, the amount of dormant Bitcoin supply is increasing as investors are reluctant to sell. This trend is evident in the record highs of Bitcoin supply that has not moved in at least a year. Analysts suggest that this may be due to accumulation, long-term holding, or institutions buying and locking away the asset. The decrease in available supply should have a positive impact on price action since there are fewer Bitcoins to buy and sell. However, some argue that holding Bitcoin instead of using it goes against its decentralized nature, although others see it as a store of value in times of high inflation. The recent BTC price increase has resulted in short-term holders making profits, with 97% of the supply in profit. Resistance remains heavy at the $31,185 level, and if it cannot be breached, a double-top pattern may form, leading to further consolidation.

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