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Majority of Bitcoin Supply Hasn’t Moved in Over a Year, Reaching All-Time High

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Long-Term Holders Remain Committed

New on-chain data reveals that a significant portion of the Bitcoin supply has been inactive for at least one year, reaching a record-breaking 69%. This group, known as the "long-term holders," consists of investors who have held their Bitcoin for an extended period of time.

Long-Term Holders vs. Short-Term Holders

Bitcoin investors are divided into two main groups: long-term holders (LTHs) and short-term holders (STHs). LTHs are those who have held their coins for longer than a specified period, usually around five to six months, while STHs are investors with coins younger than this threshold.

The Commitment of Long-Term Holders

Statistics show that the longer a holder keeps their coins dormant, the less likely they are to sell them. This makes LTHs the more committed part of the market, as they tend to hold onto their Bitcoin even during market rallies or crashes.

A Growing Trend

The percentage of the total Bitcoin supply that has been dormant for over a year has recently reached an all-time high of 69%, as depicted in the chart below. This trend indicates that a significant number of investors are choosing to HODL their assets instead of taking profits.

Potential Reasons for Holding

Despite Bitcoin's value more than doubling since the lows after the collapse of the FTX exchange a year ago, these long-term holders are still not selling. This suggests that they may have even higher hopes for the asset and are waiting for further price increases.

What Does This Mean for the Bitcoin Rally?

With a large portion of the Bitcoin supply effectively locked away from selling, it remains to be seen how the ongoing Bitcoin rally will unfold. The current price of Bitcoin is around $36,800, experiencing a 2% decrease in the past week.

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