One-Year Dormant Bitcoin Supply Falls to 18-Month Low of 65.8%
The drop likely represents profit-taking by investors who held coins for a year or more and marks a change from the holding strategy seen through 2023.
The percentage of bitcoin's circulating supply that last moved on-chain at least a year ago has fallen to the lowest level since October 2022, according to data tracked by blockchain analytics firm Glassnode.
On Monday, 12.95 million BTC, equivalent to 65.84% of the circulating supply of 19.67 million BTC, remained unchanged for over a year, the lowest percentage since October 2022. The metric peaked above the 70% with the debut of nearly a dozen spot ETFs in the US in mid-January and has been falling since then.
Since the end of December, the percentage of circulating supply that has not moved in at least two years has decreased from 57.4% to 54%.
The drop likely represents profit-taking by investors who held coins for a year or more and marks a change from the holding strategy seen through 2023.
The need to sell is likely due to the massive 148% rise in the price of bitcoin since April last year and the 50% rally since ETFs began trading in the US. It is difficult to determine the exact percentage of bitcoin which left the supply idle and was liquidated in the market.
According to data tracking website MacroMicro, a decrease in the percentage of idle BTC is a “leading indicator of the end of the bull run.”
However, previous data shows that bull markets tend to peak as the percentage of idle supply bottoms out and begins to rise.
