More than 50% of Bitcoin supply is inactive for a year, signaling long-term confidence
For over a year, more than 50% of Bitcoin’s total supply has been inactive on-chain, showing how strong the long-term value of this coin is considered by people who hold it for a long time. This means that these owners are confident in holding on to their Bitcoins instead of selling them when the market fluctuates. Such behavior indicates confidence in the continued growth of Bitcoin’s value over time.
After falling to $56,000 recently, Bitcoin is now regaining its price; therefore, the holders began to act differently than before. Those who have owned their Bitcoins for at least one or two years no longer sell them. This shift from the distribution phase to the accumulation phase suggests that these groups are once again confident in future BTC prices. These categories therefore prefer to keep their assets rather than convert them into money at current rates.
Bitcoin Holders Show Confidence as Key Support Levels Are Tested
The technical outlook for Bitcoin is currently at a very important point. Prices are probing key support levels and the behavior of long-term holders and other on-chain metrics indicate a strong underlying uptrend. However, if the daily Ichimoku cloud is breached, market sentiment could reverse. This could result in a return to $64,000. Technical and on-chain indicators should be closely monitored by investors so that they can make informed decisions over the coming weeks.
Ultimately, Bitcoin holder activity over an extended period of time provides insight into how people feel about this asset class. This is seen in the fact that more than half of all bitcoins have remained inactive for over a year, showing confidence in their value over time. While critical supports are still being tested by BTC prices, the movements of these participants along with key technical signals will determine the markets’ next direction.
