Bitcoin's supply dormancy has reached an all-time high, according to the latest data from on-chain analytics firm Glassnode.
The firm's recent tweet reveals that approximately 40.083% of Bitcoin's total supply has been inactive for over three years, a new record in the history of the leading cryptocurrency.
This implies that a significant portion of Bitcoin holders have not moved their assets despite the extreme price volatility that characterizes the Bitcoin market.
Supply dormancy refers to the measure of how long Bitcoin has remained in a wallet without being moved or traded. The longer the duration, the higher the supply dormancy.
This metric is often used to gauge investor behavior and sentiment. High dormancy typically indicates a hodling behavior, where Bitcoin holders, or "hodlers," are confidently holding their assets despite market fluctuations, anticipating a long-term price increase.
Rise of wholecoiners: 1 million addresses now own whole Bitcoin
Another fascinating development in the Bitcoin community is the increasing number of "wholecoiners" — Bitcoin addresses that hold at least one whole Bitcoin (BTC). As per a tweet from Rafael Schultze-Kraft, the co-founder of Glassnode, the number of such addresses has now reached a milestone of 1 million. This trend suggests a growing number of individuals or entities accumulating Bitcoin, notwithstanding its high price point.
Owning an entire Bitcoin is perceived as a significant achievement within the cryptocurrency community. As the total supply of Bitcoin is capped at 21 million, owning a whole coin means holding a sizable fraction of a finite asset.
This notion of scarcity enhances the allure of owning a complete Bitcoin, making it a status symbol among cryptocurrency enthusiasts. Moreover, as Bitcoin's price has surged over the years, owning a whole Bitcoin has become financially unattainable for many, further highlighting the significance of this milestone.