On chain data shows that over 50% of the current Bitcoin supply has been dormant since at least five years ago.Bitcoin supply over 5 years will only continue to growIn a new post on X, analyst James V
On chain data shows that over 50% of the current Bitcoin supply has been dormant since at least five years ago.
Bitcoin supply over 5 years will only continue to grow
In a new post on X, analyst James V. Straten shared a chart showing the distribution of token supply over five years. Investors with such old tokens form part of the 'Long Term Holders (LTH)' group, which includes all addresses that have held Bitcoin since at least 155 days ago.
According to statistics, the longer investors hold tokens, the less likely they are to sell or transfer them at any time. Therefore, LTH is a firm hand in the market and is rarely sold even during periods of high profits or losses.
Due to the fact that even among these LTHs, investors who have held coins for over five years have held them for a considerable period of time, these holders will be the most determined group of people in the entire industry.
The following chart shows the percentage of Bitcoin supply currently in circulation that belongs to this age group:
The value of this indicator seems to have risen for some time
According to Straten's data, Bitcoin LTH, which holds coins for 5 to 7 years, currently holds a total of 1.8 million BTCs. The group aged 7 to 10 holds 2.8 million Bitcoins, while those beyond this range hold 5.7 million Bitcoins.
These holdings total approximately 10.4 million Bitcoins, equivalent to approximately 53.3% of the total supply of the cryptocurrency. This means that more than half of the circulation supply has been dormant since at least five years ago.
However, it should be noted that a significant portion of this dormant supply is actually tokens locked in addresses that have been forgotten or inaccessible by the key.
The reason why this part of the supply is dormant is not because their investors are willing to hold it, but because they are just lost. That is to say, the entire supply of more than five years will not be lost, and of course, there will also be many real LTH in this segment of the market.
Regardless of the method, whether it is loss or holding, this supply is basically locked out of trading. Due to the continuous growth of this supply over the years (as shown in the figure), Bitcoin continues to be locked in this way.
Due to how supply and demand dynamics often play a role, this development naturally has some bullish effects on the price of cryptocurrencies, although they may only be visible in long-term research.
Bitcoin Price
After retreating from its recent high, Bitcoin has continued to consolidate sideways near the $27500 level in the past few days.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
