Bitcoin Supply Dormant Hits All-Time High
Bitcoin’s supply dormancy, a measure of how long Bitcoin remains inactive in wallets, has reached an all-time high, indicating that a significant percentage of Bitcoin investors are adopting a long-term investment strategy
Read U.TODAY on
Google News
Bitcoin’s supply dormancy has reached an all-time highaccording to the latest data from the chain analysis company Glassnode.
The firm’s recent tweet reveals that approximately 40.083% of Bitcoin’s total supply has been idle for over three years, a new record in the history of the leading cryptocurrency.
This means that a significant portion of Bitcoin holders have not moved their assets despite the extreme price volatility that characterizes the Bitcoin market.
Supply dormancy refers to a measure of how long Bitcoin has been in a wallet without being moved or traded. The longer the duration, the higher the supply dormancy.
This metric is often used to measure investor behavior and sentiment. High dormancy usually indicates a hodling behavior, where Bitcoin holders, or “hodlers,” safely hold their assets despite market fluctuations, expecting a long-term price increase.
The rise of wholecoiners: 1 million addresses now own all of Bitcoin
Another fascinating development in the Bitcoin community is the growing number of “wholecoiners” – Bitcoin addresses that hold at least one whole Bitcoin (BTC). According to s chirping from Rafael Schultze-Kraft, the co-founder of Glassnode, the number of such addresses has now reached a milestone of 1 million. This trend suggests that an increasing number of individuals or entities are accumulating Bitcoin, despite the high price point.
Owning an entire Bitcoin is perceived as a significant achievement within the cryptocurrency community. Since the total supply of Bitcoin is limited to 21 million, owning an entire coin means having a significant fraction of a finite asset.
This notion of scarcity increases the allure of owning a complete Bitcoin, making it a status symbol among cryptocurrency enthusiasts. Also, as Bitcoin’s price has risen over the years, it has become financially unattainable for many to own an entire Bitcoin, further highlighting the significance of this milestone.
