According to CoinDesk: The percentage of Bitcoin's (BTC) circulating supply that hasn't been active on-chain for at least a year has set a new record, reaching 70.35%, according to blockchain analytics firm Glassnode. This surpasses the previous high of 69.35% seen in July and indicates a strong belief among Bitcoin holders amid crypto-wide volatility after BTC reached all-time highs in 2021, according to Reflexivity Research.
Cryptocurrency supply that hasn't moved on-chain in two, three, or five years has also reached their respective all-time highs. This suggests that long-term investors are reluctant to sell their holdings, even as Bitcoin's value has more than doubled to $37,000 over the course of this year.
Reflexivity Research stated, "While higher prices will ultimately encourage new sellers, with Bitcoin up over 100% in the same period, it appears Bitcoin holders are not planning on offloading inventory at these price levels or any time soon."
However, these metrics might not accurately reflect Bitcoin's activity as the financialization of the cryptocurrency through investment tools like exchange-traded funds (ETFs) and cash-settled futures continues to evolve. For instance, in the case of an ETF, while the pooled cryptocurrency sits idle in custody, investors can still actively trade bullish or bearish positions on an exchange through ETF units.
