Bitcoin (BTC) — the world’s first cryptocurrency — keeps leaving cryptocurrency exchanges as on-chain data keeps showing signs of accumulation by long-term investors.

Data provided by blockchain analytics platform Glassnode shows that the percentage of bitcoin that has not been moved for at least one year just reached a new all-time high of 67.037% and the percentage of BTC not moved for at least five years just hit a new all-time high of 28.269%.

Similarly, also the amount of supply last active at least 10 years ago just reached a new all-time high of 2.64 million BTC currently worth nearly $61.5 billion.

Bitcoin addresses with 1+ BTC reach new all-time high - 1
Bitcoin’s supply not moved for at least 10 years. | Courtesy of Glassnode

As the chart above shows, a significant amount of bitcoin appears to be sitting still from the very early days of the network. The chart clearly shows a rather sharp pick up in the number of coins not moved for at least ten years in 2019 — about ten years after the blockchain launched.

Ever since that moment, the metric kept sharply increasing. We can reasonably assume that much of it is due to bitcoin wallets to whom the private keys were lost in the network’s early days when it had little to no value and it was often given away for free.

Indeed, the curve has already started to flatten in 2021, about ten years after bitcoin broke one dollar of value. All of this data point to an increasingly shrinking bitcoin’s real supply, as many of those old wallets with significant holdings are not likely to ever come back to life.

Furthermore, the number of bitcoin addresses holding at least 1 BTC — worth $23,200 as of press time — reached a new all-time high of 982,932.

This suggests that accumulation is picking up at a retail level. Glassnode data also shows that over the last 24 hours $620.8 million was sent to crypto exchanges and $678.5 million was moved out of them, resulting in a net outflow of $57.6 million.

A net outflow is believed to be a bullish sign since investors who move their holdings off of crypto exchanges usually do it for long-term safekeeping — safe from hacks and bankruptcies. Also, coins that are not on an exchange are also coins that are not immediately available for sale.

The findings follow a recent report indicating that more bitcoin has remained dormant in the last ten years, leaving much less available on exchanges.

Follow Us on Google News


Leave a comment

Your email address will not be published. Required fields are marked *