Update (Aug. 19 at 7:20 am UTC): Removed a paragraph that incorrectly compared the data with hodl wave by realized price data from Aug. 11.
Around three-quarters of all circulating Bitcoin hasn’t been moved for the past six months or more, according to onchain data.
The findings come from Glassnode’s hodl wave chart, which uses blockchain data to give a macro view of Bitcoin (BTC) held in wallets based on the time since it last moved.
The data shows around 74% has been stationary for most of 2024 despite the asset falling 21% from its all-time high.
The dominance of older coins suggests that long-term investors are increasingly holding onto their BTC as a store of value, possibly anticipating future price increases.
The holding trend also reduces the supply of Bitcoin available for trading, potentially leading to price appreciation as demand increases and supply is squeezed.
Meanwhile, in an Aug. 19 X post, onchain analyst James Check observed that more than 80% of Bitcoin short-term holders are underwater, as their holdings were acquired at higher than current spot prices.
He cautioned that this could lead to further downsides if they panic sell as they did in previous years. Short-term holders are those who have held BTC for fewer than 155 days.
“This is similar to 2018, 2019, and mid-2021, which signaled many investors were at risk of panicking and precipitating a bearish trend.”
Related: 45% of Bitcoin supply has not moved in 6 months — Research
Broader market sentiment is still bearish, with the Crypto Fear & Greed Index registering a score of 28 — deep in fear territory. Over the past few weeks, it has returned to fear levels not seen since December 2022.
Bitcoin prices topped $60,000 in late weekend trading. However, they have since retreated sharply, falling to $58,619 at the time of writing.