Approximately 29.14% of bitcoin’s circulating supply has remained untouched for five or more years, according to data from Glassnode, a cryptocurrency data intelligence provider. This amounts to around 5.67 million BTC out of the total 19.45 million BTC mined so far. It seems that more and more long-term holders are choosing to leave their bitcoin stash untouched rather than transferring or cashing it out. In fact, the percentage of BTC supply last active over five years ago recently reached an all-time high of almost 30%, with a significant increase in the past few months.
One interesting observation is that whenever bitcoin’s price stagnates for a continuous period of time, the percentage of supply last active five years ago tends to spike. This could be attributed to the relatively low volatility of BTC in recent months and its consolidation around the $29,000 mark. At the start of 2022, the percentage was slightly above 20%, and back in 2016, it was a mere 10%.
In addition to the long-term holders, Glassnode also revealed that the number of Bitcoin addresses holding over 1 BTC has reached a new all-time high. Currently, there are 1,012,954 such wallets, a small increase compared to the previous peak recorded on August 3.
These trends indicate that a significant portion of bitcoin holders are adopting a long-term investment strategy, choosing to hold onto their BTC rather than actively trading or selling it. This could be a reflection of the growing confidence in bitcoin’s potential as a store of value and a hedge against inflation.
As the cryptocurrency market continues to evolve, it will be interesting to see how these long-term holders impact the overall supply dynamics of bitcoin and whether their strategy proves to be profitable in the long run.