Majority of Bitcoin Held for Over Six Months
Despite a 21% decline from its peak price, a significant portion of Bitcoin remains untouched in wallets for the last six months.
Key Findings
According to on-chain data, approximately 75% of all circulating Bitcoin has not been moved for over six months.
- This analysis comes from Glassnode’s Hodl Wave chart, which assesses Bitcoin based on how long it has remained in wallets.
- As of August 11, it was reported that nearly 45% of Bitcoin had been dormant for the same duration.
- Recent updates indicate that around 74% of Bitcoin has remained stationary throughout much of this year, even with the price drop.
The trend of holding onto Bitcoin suggests that many long-term investors are viewing it as a store of value, perhaps anticipating price increases in the future.
This holding behavior leads to a reduced supply of Bitcoin available for trading, potentially driving prices up as demand continues to rise.
Additionally, recent observations by on-chain analyst James Check revealed that over 80% of short-term Bitcoin holders are currently at a loss since their purchases were made at higher prices.
“This scenario is reminiscent of market conditions in 2018, 2019, and mid-2021, indicating a risk for panic selling among investors.”
Currently, market sentiment remains bearish, with the Bitcoin Fear & Greed Index showing a level of 28, indicating fear among investors. This marks a return to fear levels last witnessed in December 2022.
At its peak, Bitcoin was trading above $60,000, yet it has recently fallen to around $58,619.