According to Glassnode data, 70.35% of bitcoin‘s historical supply in circulation has not moved in over a year, despite the volatile crypto environment and broader economic challenges that have emerged since the 2021 peak. This trend highlights a significant level of holder retention and suggests a strong belief in the cryptocurrency’s future.
The resilience of bitcoin holders is particularly noteworthy, as the value of the digital currency doubled to $37,000 in 2023. The lack of selling pressure from long-term investors, even in the midst of price appreciation, underscores their commitment and belief in bitcoin’s potential long-term value.
Further underscoring the steadfastness of these holders is the unprecedented level of dormant supply of two to five years. This indicates that investors are not only holding on to their assets, but doing so for longer periods of time, which may reflect their continued confidence in bitcoin’s future prospects.
The evolving landscape of investment vehicles such as spot-based ETFs and cash-settled futures is also recognized as a factor that could influence bitcoin’s supply dynamics. These financial products allow investors to trade and gain exposure to bitcoin without having to move the actual cryptocurrency, which could affect perceptions 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 price of bitcoin, pushing it higher. This decision seems to have reinforced the bullish narrative around bitcoin, suggesting promising outcomes for its investors.
