According to recent data from Glassnode, an on-chain analytics firm, more than half of the Bitcoin supply is inactive. Notably, the price of assets has been relatively surging finally after a series of downs over the past year.
Data suggests that the majority of Bitcoin holders are not willing to sell their assets at the moment and are inactive. The inactivity or dormancy here represents that the coins have not shown any movement for the past two years. In particular, the percentage of supply last active more than two years ago has hit an all-time high of 53%.
Notably, the number of dormant Bitcoin increased this year after almost two years of hovering around 45%. Hence, this reveals that those Bitcoin holders who bought the asset more than two years ago are unwilling to sell.
However, the holders who bought the asset during the last bull market in 2021 would still be underwater right now i.e. running into losses. The losses to these buyers are far from a flip to the positive side as Bitcoin is still trading down almost 60% from its all-time high in November 2021.
Data from Glassnode also suggests that just under 15% of all Bitcoin in circulation has not shown any movement in over a decade. Additionally, Anthony Pompliano, an industry influencer tweeted another set of data Monday morning. His data and observations reveal that almost 29% of the total Bitcoin in circulation has not moved in the last five years. There are more than 2.7 million Bitcoins that might be lost, forgotten, “or in the hands of the most disciplined investors in the world.”
Over the weekend, the analytics firm reported that the number of non-zero Bitcoin addresses had been propelled to an all-time high of 45.5 million which is a good sign for the asset. It noted:
This suggests the degree of on-chain activity is currently improving.
In addition, Glassnode revealed that Bitcoin to exchange inflow volume has just hit its monthly low. This low volume suggests that more holding and self-custody are occurring whereas high inflows to centralized exchanges often signal an increase in selling pressure. The opposite may be the case when inflow volumes are as low as they are now.
On the contrary, exchange outflows typically indicate that Bitcoin is being held for the long term, which is seen as bullish. However, exceptions do exist as the metric’s value touched its peak last year but the activity was driven by waning trust in centralized crypto exchanges.
Nonetheless, Bitcoin’s recent performance has been impressive, with 69% of its holders considered long-term holders who have held the cryptocurrency for more than one year. Todayq News reported that only 23% of holders have held it between one and 12 months, and 8% of addresses hold it for less than one month.
A few days back, another set of data from Glassnode revealed that Bitcoin was going to enter the early stage of the bull market. At the time of writing, Bitcoin is trading at $28,298.40, a 0.44% increase over the past 5 days and about a 40% increase over the past month.