Bitcoin Supply Dormancy Reaches All-Time High

According to on-chain analytics firm Glassnode, the supply dormancy of Bitcoin has reached an all-time high. This means that a significant portion of Bitcoin has not been moved or traded in over three years.

Supply dormancy is a measure of how long Bitcoin has remained in a wallet without being moved or traded. The longer the duration, the higher the supply dormancy. This metric is often used to gauge investor behavior and sentiment. High dormancy typically indicates a hodling behavior, where Bitcoin holders, or “hodlers,” are confidently holding their assets despite market fluctuations, anticipating a long-term price increase.

The rise in supply dormancy is a positive sign for Bitcoin. It suggests that investors are becoming more confident in the long-term prospects of the cryptocurrency. This is further supported by the increasing number of “wholecoiners” — Bitcoin addresses that hold at least one whole Bitcoin (BTC). As per a tweet from Rafael Schultze-Kraft, the co-founder of Glassnode, the number of such addresses has now reached a milestone of 1 million.

Owning an entire Bitcoin is perceived as a significant achievement within the cryptocurrency community. As the total supply of Bitcoin is capped at 21 million, owning a whole coin means holding a sizable fraction of a finite asset. This notion of scarcity enhances the allure of owning a complete Bitcoin, making it a status symbol among cryptocurrency enthusiasts. Moreover, as Bitcoin’s price has surged over the years, owning a whole Bitcoin has become financially unattainable for many, further highlighting the significance of this milestone.

The rise in supply dormancy and the increasing number of wholecoiners are both positive signs for Bitcoin. They suggest that investors are becoming more confident in the long-term prospects of the cryptocurrency. This is a bullish signal for Bitcoin and could lead to further price appreciation in the future.