As Bitcoin's (BTC) price performance looks paltry to traders and analysts, "diamond hands," a group of the most passionate Bitcoin (BTC) holders, continues to accumulate the digital gold in anticipation of the next bull run. Meanwhile, researchers indicate that volatility spikes might be on the menu.
Almost 30% of Bitcoins (BTC) stay dormant for 5+ years
The percentage of the Bitcoin (BTC) supply that has stayed dormant for at least five years just printed a fresh all-time high. As of Aug. 27, 2023, 29.508% of Bitcoins (BTC) have not been moved between on-chain wallets in last 60 months. This fact was revealed by Glassnode, a leading on-chain analytical team, via its Glassnode Alerts tracker.
The metric went parabolic in early 2022. Meanwhile, the amount of "HODLed or lost" coins also registered a notable record. The amount of 7,838,524.065 Bitcoins (BTC) belongs to this category. These Bitcoins (BTC) are either stored in the on-chain wallets of passionate Bitcoiners or lost forever due to issues with private keys.
At the same time, the Bitcoin (BTC) balance of exchanges dropped to a five-year low at 2,256,045.019 BTC, Glassnode revealed in recent tweet. As such, Bitcoin (BTC) holdings continue their migration from "tourists" to "believers."
As covered by U.Today previously, Bitcoin (BTC), the largest cryptocurrency, entered a "mid-cycle lull" phase characterized by a choppy performance.
Typically, this is a signal for the last waves of "pain" before the start of a new rally, data from 2016-2020 says.
Bitcoin (BTC) changes hands at $26,100, at the same level it was at 24 hours ago.
Analyst foresees "interesting part of Bitcoin cycle" coming
At the same time, Bitcoin's (BTC) "Hodler Growth Rate," a one-year growth rate of two-year and longer Bitcoin (BTC) holders, sees its growth slowing down. In 2016 and 2020, it indicated the start of a rally in the short-term perspective.
We are starting to approach the interesting part of the Bitcoin cycle.— Charles Edwards (@caprioleio) August 28, 2023
"Hodler Growth Rate", the 1-year growth rate of 2+ year Bitcoin holders has completed the bear market rapid growth phase and is plateauing.
Look what happened every other cycle... pic.twitter.com/aUlB7LF7vP
This analysis was posted by Charles Edwards, founder of Capriole Investments digital asset hedge fund. The quantity of holders in this group increases every bear market, he noted.
In this cycle, it started growing in early January 2022, just after the start of Bitcoin's (BTC) bear phase. As such, this indicator works well based on previous Bitcoin (BTC) performance.