It seems that investors in Bitcoin (BTC) are increasingly sitting on their hands in hopes of price increases, with the share of Bitcoin supply that has been inactive for the past three months, rising to a record high of 85%.
Glassnode analytics service provider Glassnode set a milestone in Monday’s The Week On-Chain report, concluding that “investors are not using their coins.”
The addresses that have not moved bitcoins in 12 months, called Long Term Holders (LTH), are among the most active of those held in cryptocurrencies – these addresses move only 6,500 bitcoins per day.
The accumulation trend does not appear to be declining as the supply share on central stock exchanges has also fallen to a record low level of 12.9% as BTC is increasingly placed in safe vaults.
Glassnode reports that over 5,000 BTC (approximately $ 338.6 million) have been withdrawn from central trading floors in the past week. The report highlights:
“The market is probably still in a calm build-up phase, characterized by low activity, significant exchange rate outcomes and very modest strategic expenses from experienced players.”
Bitcoin reached all-time highs, exceeding $ 67,000 on Monday, with market values beating Tesla and Facebook as well.
On the topic: The BTC price is “ready for rally”, and bitcoin bulls look at 85 thousand dollars – Analysis
The report notes that the increased accumulation of bitcoins from long-term coin holders also served as a warning of a previous high for BTC in April.
The share of the Bitcoin supply represented by long-term contract holders was 80.6% in August 2020, before it reached its peak in April 2021 at almost 66,000 dollars.
From $ 66,000, LTH has used up 0.73% of the Bitcoin supply, which has reduced the supply they have to about 68%.