According to recent on chain data, a whopping 54 percent of Bitcoin’s total supply has remained inactive for over two years, while the price of the cryptocurrency has exploded by 500 percent during the same period.
Rafael, from Glassnode, posted on X (formerly Twitter) sharing insights into Bitcoin’s *Active Supply* trend. This metric monitors the proportion of Bitcoin to confirm transactions within specified timeframes. The data shows that a huge amount of Bitcoin holders are not trading but ‘HODL’ their Bitcoin for dear life.
Bitcoin Nears $100K Amid Strong Investor Confidence
Glassnode charts show that *Active Supply*, Bitcoin held between one and six months declined, but they show that younger *Active Supply* bands (one to six months) are increasing. That means newer investors are trading actively as the cryptocurrency is in the middle of a price rise.
Closer to home, older bands, in particular those holding for two years or more, have stayed largely dormant. This is in line with November 2022, which was at the bottom of the previous bitcoin bear market. Since, the dramatic price recover has not fazed long term holders. The co-founder of Glassnode said, “HODLing isn’t a meme, it’s real.”
Long term holders are less likely to sell as time goes on statistically. With over half of BTC circulating supply undisturbed for more than two years, many of these investors appear eager to sit on their positions and contribute to market stability.
Related news includes a significant outflow from cryptocurrency exchange Deribit, which revealed users pulled a net 31,000 BTC – nearly $3 billion – to self custodial wallets. This might be an indication of accumulation, implying good things to come for BTC future, say analysts.
BTC is now currently trading at near $98,900 and tantalizingly close to the highly awaited $100,000 cap. If this trend of strong investor confidence and little to no sell-offs continues on, then we could be this close to reaching this target.
