Recent events in the cryptocurrency market have revealed an interesting aspect - over 30% of bitcoins remain inactive for five years.
What Does Bitcoin Dormant Supply Mean?
Bitcoin dormant supply refers to the number of coins that have not moved from their wallets due to a lack of outgoing transactions. This can signal the holders’ views on long-term storage.
Long-Term Bitcoin Holders
Long-term Bitcoin holders, often referred to as HODLers, do not react to market fluctuations and believe in Bitcoin’s long-term value as a digital asset. This group includes both individual investors and institutional organizations.
How Dormant Supply Influences Bitcoin Market
A large dormant supply creates supply-side pressure, reducing market liquidity. This affects price fluctuations, as fewer bitcoins are available for trading.
The phenomenon of Bitcoin dormant supply highlights the unwavering belief of long-term holders in the future of cryptocurrency, influencing market dynamics and the HODL strategy.
