Bitcoin is largely not moving again, with the amount of dormant coins nearly at a new all-time high.
According to blockchain analysis firm Glassnode, the number of Bitcoins that have not moved for at least six months—dubbed “old supply”—stands at 14.99 million, worth roughly $370 billion at today’s prices.
The all-time high is 15.029 million, Glassnode added, from December. But why is this happening?
Another blockchain firm, Arkham Intelligence, told Decrypt this is because Bitcoin investors are again focusing on long-term gains. “The Bitcoin community has clearly become more long-term oriented, focusing primarily on holding,” CEO Miguel Morel said.
“Other chains such as Ethereum have communities building tools and services where coins move significantly more, mostly in pursuit of profits.”
Glassnode added in the report that there is “a turning of the cycle and a marked shift in investor behavior patterns.”
The Bank for International Settlements yesterday released a report concluding that the investors making profit from buying the cryptocurrency are pro-traders and whales—that is, those who hold a lot of it for a long time or have been savvy enough to sell before significant declines.
Most Bitcoin buyers, according to the BIS report, entered the market during bull runs when the price was high, and these investors have largely sold for losses.
Dormant coins actually become “increasingly unlikely to be spent” after a 155-day holding period, Glassnode has previously said. The analytics firm noted in its report today that such activity has been previously observed in prior bear markets, “potentially signaling a perception that the market is oversold”—meaning it may be poised for a rebound.
Earlier this month, an ancient Bitcoin address that had not transacted in over a decade emptied its wallet—potentially to cash out a 120,000,000% profit of $9.6 million in Bitcoin.