According to CoinDesk, the percentage of bitcoin's circulating supply active onchain within the last month fell to a record low of 5.4% early this week, as reported by Blockware Solutions and Glassnode. This indicates that fewer coins are changing hands, suggesting supply-side weakness. At the time of writing, bitcoin's circulating supply was 19.48 million. Blockware Solutions stated in an email that as supply-side illiquidity continues to increase, any demand catalyst will send the price skyrocketing.
The percentage of circulating supply that has remained inactive for over a year stands near 70%. Buy and hold remains a preferred strategy in the crypto market, with long-term holders controlling over 75% of the circulating supply. Glassnode defines long-term holders as addresses that hold coins for at least 155 days. However, macro and regulatory concerns still favor the bears. David Lawant, head of research at FalconX, noted that the macro scenario has never been murkier and the 'higher for longer' general mood could keep a lid on risk assets, including crypto. Lawant also mentioned potential selling pressure coming from government-seized wallets, chapter 11 portfolios, and large token unlocks over the next 6-12 months, as well as uncertainty on whether more regulatory action is coming in the U.S.
