Data from Glassnode shows that a historic 70.35% of Bitcoin's circulating supply has not moved for over a year, despite the volatile crypto environment and broader economic challenges that have arisen since the peaks of 2021. This trend highlights a significant level of holder retention and suggests a strong conviction in the cryptocurrency's future.
The resilience of Bitcoin holders is particularly notable as the digital currency's value has doubled in 2023, reaching $37,000. The lack of selling pressure from long-term investors, even amidst price appreciation, underscores their commitment and belief in the potential long-term value of Bitcoin.
Further emphasizing the steadfastness of these holders is the unprecedented level of dormant supply from two to five years. This indicates that investors are not just holding on to their assets but are doing so for extended periods, which could reflect their enduring confidence in Bitcoin's future prospects.
The evolving landscape of investment vehicles such as spot-based ETFs and cash-settled futures is also recognized as a factor that might influence Bitcoin's supply dynamics. These financial products allow investors to trade and gain exposure to Bitcoin without needing to move the actual cryptocurrency, which could affect perceptions of supply activity.
Interestingly, the SEC's recent decision to delay its ruling on a Bitcoin ETF (TSX:EBIT) has had an unexpected positive impact on Bitcoin's price, propelling it upwards. This decision seems to have reinforced the bullish narrative around Bitcoin, indicating promising outcomes for its investors.
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