FameEX Hot Topics | 75% of All Bitcoin Has Been Held for Over 6 Months

According to on-chain data, approximately three-quarters of all circulating Bitcoin has remained unmoved for the past six months or more. This insight comes from Glassnode’s Hodl Wave chart, which analyzes blockchain data to provide a macro view of Bitcoin held in wallets based on the duration since they were last moved.

This marks a significant increase from just a week ago, on August 11, when Glassnode reported that around 45% of the Bitcoin supply had been dormant for at least six months. Now, the data shows that about 75% of Bitcoin has been stationary for most of this year, despite the asset experiencing a 21% decline from its all-time high.

The increasing dominance of older coins indicates that long-term investors are holding onto their Bitcoin as a store of value, likely in anticipation of future price increases. This holding trend also reduces the available supply of Bitcoin for trading, which could lead to price appreciation as demand rises and supply tightens.

However, not all holders are in a favorable position. On August 19, on-chain analyst James Check noted in a post on X that more than 80% of short-term Bitcoin holders are currently underwater, having purchased their BTC at prices higher than the current market value. Check warned that this situation could lead to further price declines if these short-term holders panic sell, similar to past market cycles in 2018, 2019, and mid-2021, when panic selling contributed to bearish trends.

Currently, broader market sentiment remains bearish, with the Bitcoin Fear & Greed Index registering a score of 28, indicating a level of fear not seen since December 2022. This reflects the cautious mood among investors as they navigate the current market conditions, balancing the potential for price appreciation with the risk of further declines.

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