Glassnode17, a blockchain data analysis company, posted data on Twitter on Monday, pointing out that more than 80% of the total market capitalization of Bitcoin in U.S. dollars has not moved for at least three months, a behavior that is very similar to the bottom of bitcoin in 2012, 2015, and 2018.
That means most of the bitcoin supply is still dormant, and long-term holders are increasingly reluctant to sell at lower prices, Glassnode said.
Bitcoin broke through $22,000 today to hit a high of $22,398.99, according to Tradingview, though it is still down nearly 70% from its all-time high of $69,000 in November.
It’s worth noting that Glassnode also tweeted the latest data showing that the number of Bitcoin non-zero addresses is climbing. The number of Bitcoin non-zero addresses has reached an all-time high of 42.53 million 652, surpassing the previous all-time high of 42.53 million 303.
Separately, the number of addresses holding at least 0.1 bitcoins also hit an all-time high of 3.72 million 583 today, surpassing the previous all-time high of 3.72 million 482, Glassnode data shows.
In fact, Coinbase, the largest cryptocurrency exchange in the US, expressed similar sentiments to Glassnode when it released its hard-to-capture bottom report last week, noting that the recent bitcoin sell-off was entirely caused by short-term speculators and that long-term bitcoin holders remained steadfast in their holdings, providing a foundation for market stability.
Long-term bitcoin holders own 77% of the total supply, down slightly from 80% at the start of the year but still quite high, according to Coinbase, a positive sentiment indicator that suggests these long-term holders are unlikely to sell in times of market turmoil.
Glassnode noted earlier this month that Bitcoin network activity is at levels that coincide with the deepest bear market phase of 2018 and 2019, as if market tourists have been nearly cleansed, with exchanges losing balances at historically high levels while shrimp and whale balances are piling up.
Glassnode mentioned in the weekly report last week, although many of the bottom of the signal has been forming, but the market still need certain duration to suffer a bear market, to build a resilient, at the bottom of the current state of the loss-making currency supply has reached 44.7%, most of which hold by the long-term holders, but compared with the previous bear market cycle,
The current situation is not serious.
Glassnode notes that about 16.2% of the bitcoin supply is currently loss-making held by short-term holders and 28.5% loss-making held by long-term holders, with long-term holders often taking an increasing share of the unrealized losses for a bitcoin bottom to form.