The volume of Bitcoin’s supply that hasn’t moved for at least one year has hit a new all-time high of 12.589 million $BTC, according to on-chain analytics firm Glassnode, which pointed out that the figure is equivalent to 65.77% of the cryptocurrency’s circulating supply.
On social media, the firm noted that increasing dormant supply is a “characteristic of Bitcoin bear markets,” presumably as HODLers move their coins onto cold storage to weather the storm.
Bitcoin’s price has plunged after hitting a new all-time high near $69,000 last year, and is at the time of writing trading at around $18,900 after dropping below the $19,000 mark – an important psychological support level that was BTC’s high in the 2017 cycle – earlier this week.
Last week, BTC’s price was seemingly recovering as it was nearing the $26,000 mark, but a hawkish stance from central banks reignited fears of economic recessions and sent risk assets further downward.
Commenting on Bitcoin’s decline and whale accumulation trends, Glassnode wrote in a report that the global bear market “remains in full effect with price continuing to linger above range lows.” When prices rise, the firm wrote, the “largest of investor classes” reacted with “aggressive distribution” as their search “for exit liquidity persists.”
To Glassnode, macro accumulation over a multi-year scale remains in effect, as HODLers are seemingly “unfazed by prevailing economic conditions.” The firm added:
With HODLer conviction resolute, the market has begun to stress test its statistically weakest hands, the Short-Term Holders. This cohort has been the primary proponent of day-to-day acquisitions within the current price range, culminating in a large concentration of coins clustered around the current market value.
The firm added that the most recent move lower, below the $19,000 mark, has led to a “large majority of the Short-Term Holder supply suffering unrealized losses.” As CryptoGlobe reported, BTC’s dominance is down to levels last seen four years ago. Peter Schiff, a popular crypto skeptic, has said that it was “better to abandon ship before the bottom drops out.”
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