- Quarter of Bitcoin supply unmoved for over 7 years.
- Shows long-term holding strategy.
- Indicates decreased Bitcoin liquidity.
Nearly 25% of Bitcoin’s entire supply, equaling about 5 million BTC, remains unmoved for over seven years, revealed by HODL Waves data on platforms like Glassnode Studio.
This indicates strong long-term holding sentiment, influencing Bitcoin’s scarcity and potential price movements during demand shifts.
Nearly 25% of Bitcoin’s supply has not moved in over seven years, as revealed by HODL Waves data from platforms like Glassnode. This showcases a marked trend in long-term holding and informs potential supply constraints. Unchained Capital’s Dhruv Bansal, an expert in Bitcoin data science, is credited with introducing the HODL Waves concept. An analysis of UTXO-based supply sheds light on market psychology and supply dynamics.
This long-term immobility affects the circulating supply of Bitcoin, potentially impacting its liquidity and market pricing. Nearly 5 million BTC is effectively out of circulation, underscoring a unique market behavior in crypto-assets. Institutional investors and hedge funds regard this phenomenon as a possible indicator of increased scarcity. The tight supply can contribute to significant price fluctuations during demand influxes.
Long-term Holding and Market Cycles
The rise in long-term holding aligns with previous cycles of accumulation preceding bull markets. Past patterns suggest that these periods may foster appreciation in Bitcoin’s value as new demand meets constrained supply. Technological and market impacts of this holding pattern are substantial. The absence of similar metrics for other cryptocurrencies highlights Bitcoin’s unique standing. The data underscores potential price dynamics and future supply limitations.
HODL Waves show when coins move and highlight cycles of accumulation and distribution by long-term holders, said Dhruv Bansal, Co-founder, Unchained Capital.
