- The majority of Bitcoin’s circulating supply has not been transacted with in over a year, reaching record levels of dormancy across all age cohorts of the supply.
- This unprecedented inactivity is largely due to investors who bought Bitcoin after the FTX collapse seeking to hold onto their investments long-term despite market fluctuations.
- Data shows this great hibernation of supply indicates investors increasingly see Bitcoin as a long-term store of value rather than a speculative asset.
Bitcoin investors are increasingly holding onto their coins long-term, with unprecedented levels of dormancy across all age cohorts of the supply. This trend marks a decisive shift toward using Bitcoin as a long-term store of value rather than for speculation.
Dormancy Across All Cohorts Hits Record Highs
New data analysis has revealed that 70% of Bitcoin’s circulating supply has not been transacted within the past year, the highest percentage ever. Even more remarkably, 57% of the supply is inactive for 2 years, 41% is inactive for 3 years, and 30% dates back 5 years without being moved.
Each peak in supply dormancy continues to surpass the last, showing a steady trend toward holding rather than trading. This pattern suggests investors have an increasing belief in Bitcoin’s long-term value accrual and are hesitant to let go of their holdings amid market uncertainty.
Inactivity Tied to Post-FTX Caution
This unprecedented inactivity can be largely attributed to the actions of investors who bought Bitcoin following the FTX collapse in November 2022. Seeking to hold onto their investments, these investors are keeping their coins dormant despite market fluctuations. Their long investment time horizon indicates a decisive shift away from speculative trading.
With the majority of Bitcoin’s supply lying dormant for over a year, data shows investors increasingly see it as a long-term store of value rather than a speculative asset. This new investor mentality points to a market characterized by caution and belief in Bitcoin’s future appreciation. Only time will tell whether this great hibernation gives way to an awakening bull market.