The Amount of Bitcoin That Hasn’t Moved in Over a Year Just Hit an All-Time High

Gold Key in lock illustration representing bitcoin locked away

As of today, 3rd November 2022, the owners of over 65% of all Bitcoin haven’t touched their Bitcoin for over a year! 

Is there a chance that bitcoin hoarders know something you don’t and are anticipating a bullish price explosion?  

According to an alert today from blockchain analytics firm Glassnode, 66.47% of Bitcoin’s entire supply has remained dormant in crypto wallets over the last year – making no activity whatsoever. That’s a new all-time high!

BTC last active over 1 year ago, graph from Glassnode representing little activity in Bitcoin market due to HODLing

The amount of Bitcoin inactive for over a year today hit an all time high. Graph via Glassnode.

These bitcoin owners are HODLing their assets unyielding to ongoing market fluctuations. 

BTC holdlwaves, graph from lookintobitcoin representing activity in Bitcoin market over time

‘Hodlwaves’ showing the proportion of bitcoin remaining inactive through various time windows. Via Lookintobitcoin.com.

Crypto winter thawing 

It’s been a tough few months for cryptocurrencies following the price slump that saw Bitcoin shed 70% of its value from its all-time-high price of $69,000. 

The recent bullish price action is rekindling hope among crypto enthusiasts that the crypto winter could be thawing. With the huge price swings experienced so far this year, the fact that HODLers have kept over 65% of all bitcoin dormant throughout demonstrates record-high confidence in Bitcoin as a store of value.

The backing of history

Why would anyone buy bitcoin given the current rocky state of global financial markets? Bitcoin is an emerging long-term investor’s dream that has shown the potential to rise and fall by 80% in a year, but has consistently trended upwards over the long-term.

HODLers have the backing of history, HODLing through the bottom of a bear market typically portends a substantial return on investment and removes the risk of trying to time the market by actively trading and risking their position. 

Bitcoin as digital gold 

A golden Bitcoin in front of a black and gold background

The ongoing HODLing of bitcoin is an exceedingly bullish sign for the cryptocurrency market. Instead of trading their BTC holdings, most bitcoin holders are hoarding their crypto assets in anticipation of higher prices in the future. 

Erhan Korhaliller, the organizer of Istanbul Blockchain Week, observed earlier this year: 

 “The fact that 60% of Bitcoin hasn’t moved from wallets in a year is confirmation that Bitcoin is seen as digital gold.” 

A clear sign of confidence

No matter what happens in the near term, HODLing bitcoin is a bullish sign for Bitcoin as the laws of supply and demand dictate that less supply of an asset ultimately helps create a higher price. 

The fact that an ever-increasing number of investors won’t sell their Bitcoin holdings despite heavy market volatility is a clear sign of their confidence in its inherent value. HODLers would have let go of their assets if they believed they would lose value. 

For an asset that’s overall supply is becoming increasingly illiquid, a spike in buyer interest could create a supply squeeze and an associated price hike as was recently seen in the case of GameStop.

Unseen Illiquid Supply shock 

Data from analytics firm Coin Metrics recently confirmed that only 33.7% of Bitcoin’s total supply moved between wallets since the end of October 2021, which is an all-time low. 

There’s every chance that if we see a sudden spike in demand, the market could experience an illiquid supply shock with illiquid bitcoin at levels unseen since Bitcoin’s last halving cycle in 2017.  

As the next halving cycle edges ever closer, and bitcoin liquidity grows ever-lower, it could be a great time to take advantage of low prices before the next price surge.

As always, this article does not constitute financial advice and you should be sure to do your own research and consult a professional financial advisor before making any investment decision.


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