Bitcoin chart with bitcoin supply

Almost 61% of the Bitcoin supply hasn’t moved in over a year, marking an all-time high. According to a report shared by Glassnode, close to 11 million Bitcoin have not changed hands in the past year. This represents a significant portion of the current Bitcoin supply (18.42 million at the time of press).

Last time such a trend was seen in the Bitcoin chart was during early 2016 which was actually the start of the bull run, as can be seen below.

Note also the big dip in addresses hodling Bitcoin for over one year from the chart below. It happened between 2017 and 2018. This was likely due to users moving their Bitcoin to new addresses in order to take advantage of hard forks. These hard forks offered Bitcoin holders free coins, the most notable one being Bitcoin Cash.

Therefore, dips of the number of addresses hodling Bitcoin cannot be solely attributed to people attempting to sell their Bitcoin.

Does this Bitcoin chart indicate long-term bullish behavior?

It should be noted that this hodling trend has been going on for the last couple of years. As can be seen in the Glassnode Bitcoin chart above, almost 45% of the Bitcoin supply has remained dormant in the last 2 years.

Such a large percentage of active Bitcoin supply remaining unmoved possibly means investors are expecting a bullish trend. Following the 3rd Bitcoin halving, a significant price rise is expected and this could be leading to this hodling and accumulation.

However, such a hodling pattern could also mean that BTC is still being treated as a commodity rather than a means of exchange.

It has also worthy to note that Bitcoin balances on exchanges have been dropping significantly since the beginning of the year. Furthermore, Bitcoin owners are now taking custody of their Bitcoin rather than keeping it on exchanges ready for trading. This is also an indicator that the Bitcoin owners have no intention of selling their Bitcoin any time soon.

More Bitcoin charts that indicate hodling is at its peak

According to the bitcoin chart below, the Hodler Net position has been growing since Feb 2020. This is a further indicator that bitcoin is being held as an investment by more and more people as opposed to being traded.

Since the last halving, the Bitcoin network has witnessed immense growth, however, the bitcoin transferred on-chain has stagnated since then. It is clear that investors are not willing to sell right now.

Recently, we covered how Bitcoin and Ethereum networks are strengthening and touching new all-time highs.

With so much hodling going on, bitcoin may be expected to show a slow but steady price rise. The short-term traders will have some kind of impact on bitcoin price but that might not last long.

Contending thoughts

Bitcoin price witnessed noticeable price swings in the last year. The bitcoin price fell from $11,975 to $5,032 and then it climbed back to $9,226. Thus even when 60% of the active bitcoin supply was dormant, the bitcoin price made great swings in price.

The increase in ‘coins not moved’ is not the best statistic for determining price action as people move their coins for a variety of reasons, not all of which are related to selling.

What do you think about this? Do let us know your perspective in the comments below.


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