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Data from Glassnode shows that a historic 70.35% of the circulating bitcoin supply has not moved in over a year, despite the volatility of the crypto environment and the broader economic challenges that have appeared since the 2021 highs. This trend highlights a significant level of holder retention and suggests strong conviction in the future of cryptocurrency.
The resilience of bitcoin holders is particularly notable as the value of the digital currency doubled in 2023, reaching $37,000. The absence of selling pressure from long-term investors, even in the event of price appreciation, underlines their commitment and confidence in the potential long-term value of .
The consistency of these holders is further reinforced by the unprecedented level of dormant supply between two and five years. This indicates that investors are not just holding on to their assets, but are doing so for extended periods, which could reflect their enduring confidence in bitcoin’s future prospects.
Developments in investment instruments such as spot ETFs and cash-settled futures are also seen as a factor that may influence bitcoin supply dynamics. These financial products allow investors to trade and gain exposure to bitcoin without having to move the cryptocurrency itself, which could affect the perception of supply activity.
Interestingly, the SEC’s recent decision to delay its decision on a bitcoin ETF has had an unexpected positive impact on the bitcoin price, propelling it higher. This decision appears to have strengthened the bullish narrative around bitcoin, which suggests promising results for investors.
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