Recent on-chain analysis reveals that approximately 75% of the total circulating Bitcoin has not been transferred in over six months, according to data derived from blockchain insights. This noticeable uptick highlights a substantial shift in investor behavior, particularly among long-term holders.
Just one week earlier, a report indicated that nearly 45% of the Bitcoin supply had remained dormant for six months. The new findings reveal that 74% of Bitcoin has been stationary for a significant portion of the year, despite a notable decline in value of 21% from its previous all-time high. This trend suggests that a growing number of investors are treating Bitcoin as a long-term store of value, potentially anticipating future rallies in price.
The increasing presence of long-held Bitcoin in wallets coincides with a tightening supply available for trading. As these holders retain their assets, the continued demand may lead to upward pressure on Bitcoin prices as liquidity diminishes.
In a related observation, on-chain analyst James Check noted that over 80% of Bitcoin held by short-term investors is currently in a loss position, as their entry points were higher than the current market prices. This trend raises concerns about the possibility of panic selling among these investors, reminiscent of market behaviors observed during previous downturns in 2018 and 2021.
At present, market sentiment remains predominantly negative, reflected in the Bitcoin Fear & Greed Index, which stands at a score of 28, indicating a clear state of fear among traders. In recent trading sessions, Bitcoin prices surged to approximately $60,000 but have since dropped, currently hovering around $58,619, according to CoinMarketCap data. This volatile dynamic illustrates the ongoing challenges in the cryptocurrency market as investors navigate uncertain conditions.
