Bitcoin, the world’s largest cryptocurrency by market capitalization, has seen a growing trend of holding and accumulation among investors.
According to Glassnode, a leading on-chain analytics provider, more than 50% of the bitcoin supply is dormant, meaning it has been inactive for the last two years or more.
This trend indicates that long-term investors are reluctant to sell their holdings, suggesting a strong belief in the asset’s future value. Anthony Pompliano, a well-known cryptocurrency influencer, estimated that nearly 29% of all bitcoin in circulation has been dormant for the last five years, accounting for more than $150 billion in market cap.
The data also reveals that just under 15% of all circulating bitcoin has remained inactive for a decade, representing over 2.7 million BTC lost, forgotten, or held by disciplined investors.
Non-zero bitcoin addresses hit all-time high
Glassnode also reported that the number of non-zero Bitcoin addresses reached an all-time high of 45.5 million over the weekend. This indicates a rise in on-chain activity, with more investors holding and self-custodying their assets.
Bitcoin inflow volumes to centralized exchanges have recently hit a monthly low, signaling a decrease in selling pressure. Typically, high inflows to exchanges indicate an increase in selling pressure, but with inflow volumes at a monthly low, the opposite is occurring.
Bullish trend reversal possible this year
Despite bitcoin’s price consolidating in a tight range-bound channel for the past three weeks, on-chain data suggests a bullish trend reversal could occur this year. The asset’s price rose a few percent during the Monday morning Asian trading session, reaching a five-day high of $28,500 before falling slightly. At the time of writing, the asset is trading at just below $28,315.
Conclusion
Bitcoin’s trend of holding and accumulation continues to be a prevalent theme in the cryptocurrency market. Glassnode’s data suggests that long-term investors remain bullish on the asset, with many unwilling to sell. With on-chain activity on the rise and selling pressure decreasing, a bullish trend reversal could be on the horizon for bitcoin in 2023.
