According to blockchain data, about three-quarters of all Bitcoin in circulation haven’t been moved in over six months. This data is supported by Glassnode’s hodl wave chart, which uses blockchain data to analyze the time since Bitcoin was last moved in wallets.
The data shows that about 74% of BTC has remained stagnant for most of 2024, despite the asset’s value falling 21% from its all-time high.
The predominance of “old” coins suggests that long-term investors are increasingly viewing Bitcoin as a store of value, possibly anticipating future price gains.
The tendency to hold BTC also reduces the amount of bitcoin available for trading, which could potentially push prices higher as demand increases and supply decreases.
Meanwhile, in a post on X on August 19, blockchain analyst James Check noted that more than 80% of short-term bitcoin holders are in the red because they purchased BTC at higher prices than the current ones.
He warned that this could lead to further price declines if they start panic selling, as has happened in previous years. Short-term holders are defined as those who have held BTC for less than 155 days.
The overall market sentiment remains bearish, with the cryptocurrency’s Fear and Greed Index reading 28 — indicating deep fear. Over the past few weeks, the index has returned to fear levels not seen since December 2022.
Bitcoin prices surpassed $60,000 over the weekend but have since fallen sharply and are currently at $58,619 at the time of writing.