FameEX Hot Topics | 75% of All Bitcoin Has Remained Untouched for Over 6 Months

On-chain data reveals that nearly 75% of all circulating Bitcoin has remained unmoved for at least six months. This insight comes from Glassnode’s Hodl Wave chart, which provides a macro perspective on Bitcoin holdings based on how long they have been inactive in wallets.

This marks a notable jump from just a week earlier, on August 11, when Glassnode reported that about 45% of the Bitcoin supply had been dormant for at least six months. Now, the data indicates that the majority of Bitcoin has stayed stationary for most of this year, despite a 21% decline from its all-time high.

The growing share of older coins suggests that long-term investors are increasingly viewing Bitcoin as a store of value, likely anticipating future price increases. This trend of holding also decreases the supply of Bitcoin available for trading, which could lead to price appreciation as demand rises and supply tightens.

However, not all Bitcoin holders are in a favorable position. On August 19, on-chain analyst James Check pointed out in a post on X that over 80% of short-term Bitcoin holders are currently underwater, meaning they purchased their BTC at prices higher than the current market value. Check warned that this could lead to further price declines if these short-term holders panic sell, as seen in previous market cycles during 2018, 2019, and mid-2021, where panic selling exacerbated bearish trends.

Currently, market sentiment remains cautious, with the Bitcoin Fear & Greed Index showing a score of 28, reflecting a level of fear not seen since December 2022. This cautious sentiment among investors highlights the delicate balance between the potential for price appreciation and the risk of further declines in the current market environment.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.