Bitcoin's Sleeping Giants: Unmoved Supply Hits All-Time High,
More than half of the Bitcoin supply is inactive, as revealed by on-chain analytics provider Glassnode, suggesting that long-term holders are unwilling to sell and potentially believe in the digital asset's future.
According to an on-chain analytics provider, over half of the Bitcoin supply is inactive, with the percentage of supply last active more than two years ago hitting an all-time high of 53%. This indicates that those who bought more than two years ago are unwilling to sell, potentially because they believe in the long-term potential of the digital asset.
The data, shared by industry influencer Anthony Pompliano on April 10, reveals that nearly 29% of all Bitcoin in circulation has not moved in the last five years, which amounts to over $150 billion in market cap that hasn’t moved in half a decade. The data also shows that just under 15% of all Bitcoin in circulation has not moved in a decade, suggesting that more than 2.7 million BTC may have been lost, forgotten, or held by the most disciplined investors in the world.
While some investors are holding onto their Bitcoin, there are signs that on-chain activity is improving. The data reported that the number of non-zero Bitcoin addresses had been propelled to an all-time high of 45.5 million, suggesting a degree of on-chain activity is currently occurring. Furthermore, the data also shows that Bitcoin to exchange inflow volumes have just hit a monthly low, indicating more holding and self-custody.
High inflows to centralized exchanges often signal an increase in selling pressure, whereas low inflows may suggest the opposite. As such, the current low inflow volumes may indicate a reduction in selling pressure and an increase in buying demand.
Bitcoin prices have been consolidating in a tightly range-bound channel for the past three weeks. However, previous extended periods of consolidation have ended in a large move, and on-chain data suggests a trend reversal to the upside this year.
Despite the potential long-term benefits of holding onto Bitcoin, the digital asset has had a volatile year. It is still trading down almost 60% from its all-time high in November 2021, and many that bought during the last bull market would still be underwater right now. However, some investors remain optimistic about the future of Bitcoin, and its potential to serve as a store of value and a hedge against inflation.
In summary, the data from Coinpaprika suggests that many Bitcoin investors are holding onto their assets, potentially due to a belief in the long-term potential of the digital asset. While Bitcoin prices have been volatile this year, on-chain data suggests a trend reversal to the upside may occur, and the current low inflow volumes to centralized exchanges may indicate a reduction in selling pressure and an increase in buying demand.
