Bitcoin Supply Inactive for a Year Slides to 18-Month Low of 65.8%

According to data from Glassnode, the proportion of Bitcoin in circulation that hasn’t been moved on-chain in over a year has reached its lowest point since October 2022.

Approximately 65.84%, which is around 12.95 million Bitcoins, out of the total circulating supply of approximately 19.67 million Bitcoins, had not moved for over a year as of Monday, marking the lowest percentage since October 2022. This percentage reached above 70% following the introduction of more than a dozen Bitcoin spot exchange-traded funds (ETFs) in the United States during mid-January. Since then, it has been decreasing steadily.

Starting from late December, the proportion of the total supply that hasn’t been transferred for over two years has decreased to 54% from its previous 57.4%.

Investors who had held cryptocurrencies for more than a year are probably cashing in their profits, leading to this decrease. This behavior signifies a change from the accumulation approach that was common until late 2023.

Bitcoin’s price increase of 148% since last April and an additional 50% gain since US ETFs started trading have fueled the strong desire to sell among some investors. The current bitcoin price is at $70,400 as of now. It’s challenging to determine exactly how much of the inactive bitcoin supply has been sold on the market.

Previously observed market trends indicate that bull markets reach their highest point when the proportion of idle stocks starts to increase and goes up.