On-chain data reveals that an impressive 69% of the Bitcoin supply has remained inactive for at least one year, signaling a robust commitment among long-term holders (LTHs).
Highlighted by analyst Root in a recent post on X, the all-time high (ATH) percentage of BTC supply untouched for over a year is part of the broader group known as long-term holders.
These LTHs constitute a significant segment of the Bitcoin investor base, with the counterpart being short-term holders (STHs). At the same time, different analytics platforms may define the boundary differently. Generally, a cutoff of five to six months separates these two cohorts.
Investors holding coins for periods shorter than this threshold fall into the STH category, while those holding more extended periods are considered LTHs.
Historically, the more prolonged the period a holder keeps their coins dormant, the less likely they are to move them. In simpler terms, as the supply ages, the probability of it being sold decreases. LTHs, therefore, represent a more committed part of the market, resisting easy selling even during market rallies or downturns.
Investors surpassing the 1-year threshold demonstrate even stronger commitment within the LTH category. Currently, a substantial portion of the total Bitcoin supply falls into this category, and this percentage has been steadily growing, as illustrated in the accompanying chart.
Bitcoin’s Inactive Supply Surges
Despite Bitcoin’s more than doubling in value since those lows, these investors have chosen to hold onto their assets rather than succumb to the temptation of profit-taking. This steadfast commitment suggests that these investors may have even greater expectations for the asset, holding out for further price appreciation.
The graph indicates that the percentage of Bitcoin supply inactive for more than a year has recently experienced a notable increase, reaching an all-time high of 69%. This is particularly noteworthy considering that BTC was trading around its post-FTX exchange collapse lows one year ago.
With such a significant portion of Bitcoin effectively locked away from the selling supply, the outcome of the ongoing Bitcoin rally becomes an intriguing aspect to watch.