Bitcoin Supply Dormancy Reaches ATH, Suggesting Hodling Behavior Among Investors

Bitcoin’s supply dormancy has reached an all-time high (ATH), according to a recent report by Glassnode, an on-chain analytics firm. The report reveals that approximately 40.083% of Bitcoin’s total supply has been inactive for over three years, indicating that a significant portion of Bitcoin holders has not moved their assets despite the extreme price volatility that characterizes the Bitcoin market.

This metric is often used to gauge investor behavior and sentiment. High dormancy typically indicates a hodling behavior, where Bitcoin holders, or “hodlers,” are confidently holding their assets despite market fluctuations, anticipating a long-term price increase. The report suggests that a growing number of investors are holding onto their Bitcoin for the long-term, which bodes well for the cryptocurrency’s future price performance.

The rise of wholecoiners is another fascinating development in the Bitcoin community. According to Rafael Schultze-Kraft, the co-founder of Glassnode, the number of Bitcoin addresses that hold at least one whole Bitcoin (BTC) has now reached a milestone of 1 million. This trend suggests a growing number of individuals or entities accumulating Bitcoin, notwithstanding its high price point.

Owning an entire Bitcoin is perceived as a significant achievement within the cryptocurrency community. As the total supply of Bitcoin is capped at 21 million, owning a whole coin means holding a sizable fraction of a finite asset. The fact that the number of wholecoiners has reached 1 million is a testament to the increasing popularity and adoption of Bitcoin.

The report by Glassnode indicates that despite the high volatility of Bitcoin, many investors are confident in its long-term potential and are holding onto their assets. This is a positive development for the cryptocurrency market as a whole, as it suggests that more investors are beginning to see Bitcoin as a viable long-term investment.

In conclusion, the latest report by Glassnode reveals that Bitcoin’s supply dormancy has reached an all-time high, indicating a growing number of hodlers who are confident in the long-term potential of the cryptocurrency. Additionally, the number of wholecoiners has reached a milestone of 1 million, highlighting the growing popularity and adoption of Bitcoin. These trends suggest that the cryptocurrency market is evolving, with more investors seeing Bitcoin as a viable long-term investment.

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