On-chain data reveals that nearly three-quarters of the total circulating supply of Bitcoin has remained dormant in holders’ wallets for at least the past six months.
According to HODL Waves data from Glassnode as of August 18, approximately 74% of Bitcoin’s total supply has been inactive, staying within the wallets of holders for more than six months.
This figure marks a significant increase compared to Glassnode data from August 11, which showed that only about 45% of Bitcoin’s total supply had remained unmoved during the same period.
The high percentage of inactive Bitcoin reflects a tendency among long-term holders to retain their assets, hoping for future value appreciation.
Furthermore, the decrease in the available Bitcoin supply for trading on the market could create demand pressure, potentially driving up prices if demand continues to grow.
Short-Term Bitcoin Holders Still Reporting Losses
Data from IntoTheBlock shows that around 81% of Bitcoin holders are still in profit, despite Bitcoin’s price dropping about 21% from its all-time high of $73,737 in March to $58,706 at the time of writing.
Approximately 14% of token holders are currently at a loss, with the remaining 5% breaking even.
On the other hand, analyst James Check noted that among the holders facing losses, over 80% are short-term Bitcoin holders who purchased Bitcoin at higher prices than the current market rate.
He warned that this situation could lead to further price declines if these short-term holders panic and start selling, as has occurred in previous years.
For context, short-term holders are defined as those who have held Bitcoin for less than 155 days.
“This situation is similar to what happened in 2018, 2019, and mid-2021, indicating a risk of panic among investors that could trigger a bearish trend,” wrote Check.
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