Around three-quarters of all circulating Bitcoin has remained untouched for at least the past six months, according to recent on-chain data.
This insight comes from Glassnode’s Hodl Wave chart, which analyzes blockchain data to provide a macro perspective on how long Bitcoin has been held in wallets since it was last moved.
This marks a significant increase from just a week ago. On August 11, data from the on-chain analytics platform Glassnode revealed that nearly 45% of the Bitcoin supply had been dormant for at least six months. Now, that figure has surged to approximately 74%, despite Bitcoin’s value dropping 21% from its all-time high.
The dominance of older coins suggests that long-term investors are increasingly holding onto their Bitcoin as a store of value, potentially anticipating future price increases. This trend of holding also reduces the available supply of Bitcoin for trading, which could drive prices higher if demand increases.
Meanwhile, on August 19, on-chain analyst James Check noted in a post on X that more than 80% of Bitcoin short-term holders are currently underwater, having acquired their holdings at prices higher than the current market value. He warned that this could lead to further declines if these investors panic sell, a pattern seen in previous years. Check explained with,
“This is similar to 2018, 2019, and mid-2021, which signaled many investors were at risk of panicking and precipitating a bearish trend.”
At present, market sentiment remains bearish, with the Bitcoin Fear & Greed Index showing a score of 28, indicating a state of fear. Bitcoin prices, which had briefly topped $60,000 in late weekend trading, have since fallen sharply, sitting at $58,619 at the time of writing.
