New data analysis reveals an unprecedented trend in the circulating supply of Bitcoin. A notable 70% of the supply has not been transacted within the past year, marking an all-time high for supply last active 1+ year. This cohort is experiencing an increased rate of dormancy. This trend, in large part, can be tied back to the actions of investors who made purchases following the collapse of FTX last November, seeking to hold onto their investments amidst market uncertainty.
This trend of increasing dormancy is not an isolated incident but rather part of a broader pattern. Each peak in this cohort continues to surpass the preceding one, indicative of a steadily increasing tendency toward holding.
This behavior is replicated across different cohorts. The supply last active 2+ years ago has reached 57%, while the supply untouched for the past 3+ years has hit 41%. Even more remarkable is that 30% of the supply last active 5+ years ago has also risen to an all-time high. This consistent growth in dormant supply across all cohorts might suggest a prevailing belief in long-term value accrual or, alternatively, indicate a market characterized by caution and holding strategies.
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