About three-quarters of all Bitcoin in circulation have not moved in the past six months or more, according to on-chain data.
This information comes from Glassnode's Hodl Wave chart, which uses blockchain data to provide a comprehensive view of the amount of Bitcoin (BTC) stored in wallets, based on the time since they were last moved.
This is a significant increase from just a week ago, on August 11, when data from on-chain analytics platform Glassnode showed that nearly half of the BTC supply, around 45%, had not moved in at least six months.
However, current data shows that around 74% of Bitcoin has been sitting idle for most of this year, despite the asset being down 21% from its all-time high.
BTC Hodl Wave | Source: Unchained/Glassnode
The dominance of older coins shows that long-term investors are increasingly holding their BTC as a store of value, possibly expecting future price appreciation.
This trend also leads to a reduction in the amount of Bitcoin available for trading, which could push prices higher as demand increases and supply tightens.
In a post on X on August 19, on-chain analyst James Check found that over 80% of short-term Bitcoin holders are losing money by buying BTC at higher prices than the current price.
He warned that this could lead to further price declines if these investors panic sell, as has happened in previous years. Short-term holders are those who have held BTC for less than 155 days.
“This situation is similar to 2018, 2019 and mid-2021, when many investors risked panicking and causing a bearish trend.”
High BTC STH Supply Is Losing | Source: James Check
Currently, broader market sentiment remains gloomy, with the Bitcoin Fear & Greed Index recording a score of 28, indicating fear. Over the past few weeks, the index has returned to fear levels not seen since December 2022.
Bitcoin price crossed the $60,000 mark during weekend trading, but has since fallen sharply, down to $58,700 at the time of writing.
