The percentage of Bitcoin [BTC] circulating supply that was last active on-chain at least a year ago has hit a record 70.35%, surpassing the previous peak of 69.35% in July, according to data tracked by blockchain analytics firm Glassnode.
The new all-time high reflects "strong belief by the bitcoin holder base in the wake of cryptocurrency-wide contagion and macro headwinds following its all-time highs in 2021," according to Reflexivity Research.
The percentage of supply that has not entered the chain in two, three and five years is also at their respective lifetime highs. It shows that long-term investors are in no mood to sell even after Bitcoin has more than doubled to $37,000 this year.
"While higher prices will ultimately incentivize new sellers, with Bitcoin up more than 100% in the same period, it appears that Bitcoin holders are not planning to offload inventory at these price levels or in the near term." , Reflexivity Research said in a note to clients. .
However, these metrics may not paint an accurate picture once the financialization of Bitcoin through alternative investment vehicles such as spot exchange-traded funds (ETFs) and cash-settled futures accelerates.
For example, in the case of ETFs, an issuer, with the help of the authorized participant, will pool the cryptocurrency and move it into custody, where it will remain dormant (dormant). However, investors will continue to make bullish/bearish trades on a stock market through ETF units.
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