A significant trend is emerging in the Bitcoin market, indicative of a profound shift in its supply dynamics: the unwavering commitment of long-term holders. New data highlights that a substantial portion of the cryptocurrency’s circulating supply has remained dormant for over a decade, signaling deep conviction among a growing investor base.
- Over 3.35 million BTC, representing nearly 17% of the total circulating supply, has remained unmoved for over 10 years.
- This phenomenon, tracked through “HODL Waves,” indicates strong, long-term investor conviction.
- The data, sourced from Bitcoin Magazine Pro, points to an expanding cohort of holders largely unaffected by market cycles.
- This inactive supply is frequently interpreted as a leading indicator of impending supply scarcity in the Bitcoin market.
Specifically, over 3.35 million BTC—representing nearly 17% of the total circulating supply—have not been moved in over 10 years, as revealed by data from Bitcoin Magazine Pro. This phenomenon, often visualized through “HODL Waves,” illustrates an expanding cohort of holders who remain largely unaffected by market cycles. This inactive supply, untouched even amidst periods of price volatility, is frequently interpreted as a leading indicator of impending supply scarcity.
Implications for Market Liquidity
This accumulating inactive supply directly impacts Bitcoin’s market liquidity. As older coins remain locked, the liquid portion of Bitcoin available for trade effectively diminishes. This growing “HODL base” inherently reduces selling pressure and amplifies the impact of new demand, a condition that has historically preceded significant price rallies.
The increasing proportion of long-term held BTC consistently indicates a tightening supply, leaving fewer coins readily available for speculative trading. Should demand escalate—driven by factors such as the proliferation of spot Exchange-Traded Funds (ETFs), increased institutional adoption, or broader macroeconomic shifts—it could precipitate rapid upward price adjustments. With approximately one in six Bitcoins effectively removed from active circulation, and alongside renewed interest in spot ETFs, market observers are increasingly cautioning about an impending supply squeeze. The strengthened conviction among long-term holders, coupled with potential demand catalysts, suggests the market could be positioned for a new phase of appreciation, contingent on sustained demand acceleration.
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!