According to new data, it has been shown that Bitcoin circulation isn't going as many think or expect it to be. Glassnode provided the data, showing that most Bitcoin in circulation has been inactive. When a crypto asset like Bitcoin has been inactive, it means that it hasn't been transferred to a new wallet for as long as two years. In fact, the United States is graduadually becoming the biggest bitcoin holder and most of the assets in its possesion are dormant. A crypto commentator known as Pompliano on Twitter consolidated these claims with some data to back them up. The data presented shows that the rate of inactive percentage of Bitcoin circulating supply has reached an all-time high of 53%.
Before 2023, the percentage of inactive Bitcoin circulation was just around 45%. But it has witnessed a spike in 2023, as many traders have refused to sell off their Bitcoin. It shows how much fear there is in the market, as traders who invested about 2 years ago are afraid to sell off their assets. 2021 was one of the peak years of crypto assets such as Bitcoin, and selling them off would result in considerable losses in 2023. This is the major factor causing many Bitcoins to remain dormant and inactive. Since 2021, Bitcoin has traded at less than 60% of its all-time high in November 2021. That would be a 60% loss assuming traders sell off their accumulated Bitcoin.
More Analysis of Bitcoin On-chain Movement
Popular crypto analyst Anthony Pompliano provided data showing how much Bitcoin has moved in the past few years. In his tweet, Pompliano noted that about 29% of Bitcoin in circulation has not been transferred to another wallet in the past 5 years.
"More than 1 out of every 2 bitcoin in circulation has not moved in the last 2 years. We hit a new all-time high of 53% today. If you take it a step further, almost 29% of all bitcoin in circulation have not moved in the last 5 years. That is over $150 billion in market cap that hasn't moved in half a decade. Just under 15% of all bitcoin in circulation have not moved in a decade according to Glassnode. There is more than 2,700,000 bitcoin lost, forgotten, or in the hands of the most disciplined investors in the world," Pompliano reiterated in the tweet.
But reports from Glassnode suggest that the level of on-chain activity in Bitcoin has improved in recent times. Glassnode, in their tweet, said," The recent surge in price action has propelled the number of Non-Zero Addresses to an ATH of ~45.5M, with only 96 / 5206 data points recording a larger 14d change in absolute terms.
This suggests the degree of on-chain activity is currently improving."
The Price Outlook of Bitcoin
This week has been doing reasonably well in the past 24 hours, although the cryptocurrency is yet to break through the $30k level. It is still hovering below $30k and has not shown any sign of doing so.
At the time of writing, Bitcoin has increased by less than 2% in the past 24 hours. In the past week, Bitcoin has been a little poor as it dropped in price by about 0.02%. However, looking at the monthly outlook, Bitcoin has made some incredibly large strides. It has increased by almost 40% within the past month. But traders would expect the apex cryptocurrency to make the big move and reach and move beyond $30k.