According to data tracked by Blockchain analysis firm Glassnode, Bitcoin (BTC) The percentage of inactive supply on-chain at least a year ago reached a record high of 70.35%, surpassing the previous peak of 69.35% in July.
Bitcoin Supply, which has been Inactive for a Year, Reaches a Record Level of 70%
According to Reflexivity Research, this high reflects strong belief from Bitcoin’s owner base following crypto-wide and macro headwinds following the all-time high in 2021.
The percentage of supply not moving on-chain in two, three and five years is also at its highest levels ever. This suggests that long-term investors are in no mood to sell even after Bitcoin more than doubled this year to $37,000.
“While higher prices will ultimately encourage new sellers, with Bitcoin up over 100% over the same period, it appears that Bitcoin holders are not planning to offload inventory at these price levels or anytime soon,” Reflexivity Research said in a note to clients.
But these metrics may not paint an accurate picture as the financialization of Bitcoin accelerates through alternative investment vehicles such as spot-based exchange-traded funds (ETFs) and cash-settled futures.
In the case of an ETF, for example, an issuer, with the help of an authorized participant, will pool the cryptocurrency and move it to inactive custody.
However, investors will continue to place bullish/bearish trades on an exchange through ETF units.
*This is not investment advice.
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