The percentage of Bitcoin (BTC) circulating supply that was last active on-chain at least a year ago has reached a record high of 70.35%, surpassing the previous peak of 69.35% in July, according to data from the Blockchain analysis company Glassnode.
The new lifetime high reflects “strong conviction among Bitcoin holders in the wake of crypto-wide contagion and macroeconomic headwinds following its all-time highs in 2021.”
The percentage of supply that has not moved on-chain in two, three, and five years is also at its respective lifetime highs. This shows that long-term investors are in no mood to sell, even after Bitcoin more than doubled this year to $37,000.
“While higher prices will ultimately incentivize new sellers as Bitcoin has risen over 100% over the same period, Bitcoin holders do not appear to be planning to sell inventory at this price level or any time soon,” Reflexivity Research said in a note Customers .
However, these metrics may not paint an accurate picture once the financialization of Bitcoin gains traction through alternative investment vehicles such as spot-based exchange-traded funds (ETFs) and cash-settled futures.
In the ETF case, for example, an issuer, with the help of the authorized participant, pools the cryptocurrency and stores it where it remains unused (inactive). However, investors will still make bullish/bearish trades on an exchange through the ETF shares.
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