Dormant Bitcoin Supply Hits 65.77%

Dormant Bitcoin Supply Hits 65.77%

by Jeremy

Amid market correction, dormant Bitcoin (BTC) supply has climbed significantly in the past few months. According to the latest data published by Glassnode, BTC supply that was last active at least 12 months ago touched 65.77% on 6 September.

“The volume of Bitcoin supply that has remained unspent for at least 1 year, has reached a new ATH of 12.589M BTC. This is equivalent to 65.77% of the circulating supply. Increasing dormant supply is a characteristic of BTC bear markets,” Glassnode highlighted in a recent Tweet.

After a decent gain during the first half of August 2022, Bitcoin has started plunging again in the last couple of weeks. On Wednesday, the world’s most dominant digital asset dropped below $19,000. In the past seven days, BTC has lost almost 8% of its value, making it the worst-performing cryptocurrency among the top five.

Earlier this month, Finance Magnates highlighted a sharp drop in the BTC exchange supply as the number had touched its lowest level in approximately four years. The overall number of Bitcoin addresses at a loss has also reached an all-time high recently.

Bear Market

Commenting on the recent bearish BTC market and whale accumulation trends, Glassnode stated: “The global bear market remains in full effect with price continuing to linger above range lows. Periods of price elation have been met with aggressive distribution from the largest of investor classes, as the search for exit liquidity persists. However, macro accumulation over a multi-year scale remains in effect, with HODLers and Long-Term Holders seemingly unfazed by prevailing economic conditions.”

“With HODLer conviction resolute, the market has begun to stress test its statistically weakest hands, the Short-Term Holders. This cohort has been the primary proponent of day-to-day acquisitions within the current price range, culminating in a large concentration of coins clustered around the current market value. The most recent move lower in price action has led to a large majority of the Short-Term Holder supply suffering unrealized losses,” Glassnode added.

Amid market correction, dormant Bitcoin (BTC) supply has climbed significantly in the past few months. According to the latest data published by Glassnode, BTC supply that was last active at least 12 months ago touched 65.77% on 6 September.

“The volume of Bitcoin supply that has remained unspent for at least 1 year, has reached a new ATH of 12.589M BTC. This is equivalent to 65.77% of the circulating supply. Increasing dormant supply is a characteristic of BTC bear markets,” Glassnode highlighted in a recent Tweet.

After a decent gain during the first half of August 2022, Bitcoin has started plunging again in the last couple of weeks. On Wednesday, the world’s most dominant digital asset dropped below $19,000. In the past seven days, BTC has lost almost 8% of its value, making it the worst-performing cryptocurrency among the top five.

Earlier this month, Finance Magnates highlighted a sharp drop in the BTC exchange supply as the number had touched its lowest level in approximately four years. The overall number of Bitcoin addresses at a loss has also reached an all-time high recently.

Bear Market

Commenting on the recent bearish BTC market and whale accumulation trends, Glassnode stated: “The global bear market remains in full effect with price continuing to linger above range lows. Periods of price elation have been met with aggressive distribution from the largest of investor classes, as the search for exit liquidity persists. However, macro accumulation over a multi-year scale remains in effect, with HODLers and Long-Term Holders seemingly unfazed by prevailing economic conditions.”

“With HODLer conviction resolute, the market has begun to stress test its statistically weakest hands, the Short-Term Holders. This cohort has been the primary proponent of day-to-day acquisitions within the current price range, culminating in a large concentration of coins clustered around the current market value. The most recent move lower in price action has led to a large majority of the Short-Term Holder supply suffering unrealized losses,” Glassnode added.

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