Something unusual is definitely on the cards for the Bitcoin (BTC). Experts from a leading crypto analysis agency have discovered that around 75% of Bitcoin has stagnated for the last six months. Glassnode’s Hodl Wave chart has given some severe revelations about Bitcoin hoarding.
The findings have disclosed macro view data of the Bitcoins that have been held in multiple wallets for a long time. These digital assets have moved in the last six months.
Defying the Earlier Claims, 75% BTC is Stagnant
On August 11, Glassnode data from an on-chain analytics platform had stated that around 45% of the Bitcoin has been dormant for more than six months. This was less than half of the total existing Bitcoin.
According to the previous claim, the situation was not serious, as around 65% of the digital currency was still in circulation. But the latest data from the Glassnode’s Hodl Wave chart has now made a surprising disclosure. It shows a significant jump from the previous week’s statistics.
The recent data depicts the hoarding over 74% of the total BTC in over half a year. This stagnancy has continued despite the asset’s dubious performance in recent times. Bitcoin has slipped by 21% from its all-time peak price.
Implications of Bitcoin Hoarding
Experts say this situation is leading to lesser availability of Bitcoin for new crypto-traders. When the supply is squeezed, the price increases for a commodity, Bitcoin is no different.
This hoarding also suggests that older digital assets are more popular among long-term investors. The possibility is that these long-term investors have already sensed the upcoming BTC price hikes in the near future. The stagnant Bitcoin will provide them with stored value in the event of a Bitcoin price hike.
While BTC is still depicting a bearish trajectory, this may be a preparation for an upcoming bullish performance. However, observing the current reality, Bitcoin’s Fear and Greed Index has scored 28, which is an all-time high.
Right now, over 80% of #Bitcoin Short-Term Holders are underwater, meaning their coin was acquired at a price above the current spot price.This is similar to 2018, 2019, and mid-2021 which signalled many investors were at risk of panicking, and precipitating a bearish trend. pic.twitter.com/8jM7PBqh5z
— _Checkmate (@_Checkmatey_) August 19, 2024
James Check, a renowned crypto expert, has posted on X that over 80% of short-term Bitcoin holders are still in losses. They had bought their holdings at a price more than the current price of Bitcoin.
This prediction was directed towards crypto-traders who have held the Bitcoin for less than 155 days. He also stated that this bearish trajectory could further worsen for some time, leading to panic selling.
