74% of Bitcoin Supply Remains Untouched for Over 6 Months, Signaling Strong Long-Term Confidence
According to recent on-chain data, nearly three-quarters of all circulating Bitcoin has stayed in wallets without moving for at least six months. This represents a significant increase from just a week ago, when only 45% of Bitcoin had been inactive for the same period.
The data, sourced from Glassnode’s Hodl Wave chart, highlights a growing trend among long-term investors to hold onto their Bitcoin as a store of value, despite a 21% drop from its all-time high. This reduced movement has led to a tighter supply of Bitcoin available for trading, potentially setting the stage for price increases as demand rises.
However, not all holders are in a strong position. Onchain analyst James Check noted that over 80% of short-term Bitcoin holders, who have held the asset for fewer than 155 days, are currently underwater, having bought at higher prices. If these holders panic and sell, it could trigger further price declines, reminiscent of bearish trends seen in 2018, 2019, and mid-2021.
As market sentiment remains bearish, reflected by a Bitcoin Fear & Greed Index score of 28, Bitcoin prices, which briefly topped $60,000 over the weekend, have fallen back to $58,619 at the time of writing.
