This marks a significant increase from just a week earlier when around 45% of Bitcoin had been dormant for the same period.
The data on the blockchain shows that nearly three quarters of all Bitcoin in circulation have not changed in at least six months.
Glassnode’s Hodl Wave chart, which makes use of blockchain data to provide a mega perspective of BTC stored in wallets based on the amount of time that has passed since they were last moved, is the source of these discoveries.
Even only a week ago, on August 11, statistics from the blockchain analytics platform Glassnode revealed that nearly half of the Bitcoin supply, approximately 45 percent, had been dormant for at least six months.
This represents a huge increase from the previous week. However, the data currently reveals that around 74% has remained unchanged for the majority of this year, despite the fact that the asset has dropped 21% from its all-time high.
The preponderance of older coins is indicative of the fact that long-term investors are increasingly retaining their Bitcoin as a store of wealth, maybe in anticipation of future price hikes.
Another consequence of the holding trend is a decrease in the amount of Bitcoin available for trading. It is possible that this will result in an increase in price as demand rises and supply becomes more constrained.
Meanwhile, onchain analyst James Check noted in an article on X on August 19 that more than 80% of Bitcoin short-term investors are losing money because they bought their holdings at prices higher than the current spot values.
He issued a warning that panic selling in the same manner as in previous years could lead to additional negative consequences. A short-term holder is someone who has held bitcoin for less than 155 days.
“This is similar to 2018, 2019, and mid-2021, which signaled many investors were at risk of panicking and precipitating a bearish trend.”
The Bitcoin Fear & Greed Index registered a score of 28 and fear at the time, indicating that the general market attitude is still pessimistic. Over the past few weeks, there has been a resurgence of fear levels not seen since December 2022.
As trading continued throughout the weekend, the price of bitcoin surpassed $60,000. However, they have experienced a significant decline since then, down to $58,619 at the time of this writing.
