Bitcoin hodlers are leaving their coins untouched, with most of the supply now dormant. Glassnode says the activity has a striking resemblance to the end of the last three bear markets.
According to the Glassnode chart, other times that saw similar levels of Bitcoin hodling were during the end of the bear markets of 2012, 2015, and 2018.titled “The Elusive Bottom” that on-chain data suggests that recent BTC selling has been carried out “almost exclusively” by short-term speculators. Long-term BTC holders “have not been selling into the market weakness,” he added.
“These holders own a highly concentrated ~77% of the total supply, which is down slightly from 80% to start the year but still quite high,” he explained before adding: “We see this is a positive sentiment indicator as we believe these holders are less likely to sell BTC during turbulent periods.”,” noting that activity on the network is at levels concurrent with the deepest part of the bear market in 2018 and 2019.Glassnode revealed that the number of active addresses and entities had seen a downtrend since November 2021, implying new and existing investors alike are not interacting with the network.