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Dormant Bitcoin (BTC) supply hit record-highs as hodlers refrain from selling

By:
on May 23, 2023
Updated: May 28, 2023
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  • Dormant Bitcoin supply has soared to record highs.
  • A notable 68% of the leading crypto remained inactive for over a year.
  • Bitcoin exhibits the tightest trading range in years.

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Glassnode, an on-chain analytics firm, has recently revealed that massive amounts of Bitcoin supply remain inactive in holder wallets. It added that multiple age bands are touching ATHs. Meanwhile, the balance of Bitcoin held for over a year continues to grow as investors prefer to hodl than sell.

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Bitcoin’s increased hodling

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Crypto participants continue to hold Bitcoin tokens. Meanwhile, the high inactivity supports the massively low volume throughput. Moreover, Glassnode’s chart reveals hodling upticks in all bands. These are tokens that investors scooped early in 2021 as the bull market started.

Meanwhile, the supply held by long-term investors (BTC kept for over 155 days) has touched another ATH of 14.46 million. Glassnode added that this shows assets bought after the FTX crash continue to mature, attaining the LTH status.

Furthermore, Bitcoin’s liveliness index, which measures spending and hodling, has declined to the lowest mark since December 2020. That confirms that most market participants prefer hodling at the current market conditions.

Unchained confirmed the narrative of dormant BTC on Tuesday (23 May), revealing that a massive 68.13% of BTC has not moved in more than a year. Generally, Bitcoin prices secure a bottom following seller exhaustion.

Source – Glassnode

The above observations present a positive picture as far as BTC hodl conviction is concerned. Many market participants aren’t interested in selling their assets at the moment.

However, the crypto space seems primed for imminent market volatility due to the prolonged tight-range price actions. @X_illiquid has tweeted about upcoming weekly volatility. Moreover, Invezz.com reported economic events that will likely move markets this week.

Bitcoin RHODL ratio

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The RHODL ratio tool compares assets held for more than two years to than within the six-month – 2yr range. That helps separate experienced market players (over two years) and single-cycle LHs (six months – two years).

This RHODL variant exhibits exponential uptrends, confirming that many single-cycle long-time holders (from the 2021 – 2022 cycle) are turning into expert HODLers. Considering the overwhelming downward volatility that the market witnessed during that period, it shows BTC investors are optimistic about the asset.

Source – Glassnode
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