• Over two-thirds of the Bitcoin supply has not moved in a year.
• Over half the supply has not moved in two years or longer.
• A „supply squeeze“ is predicted to propel upwards the Bitcoin price due to its supply cap.
This article discusses how over two-thirds of the entire Bitcoin supply has not changed hands in over a year, despite rampant volatility and a collapse of the Bitcoin price. The article also states that over half the supply hasn’t moved in two years or longer, and suggests that this could lead to a “supply squeeze” propelling upwards of the Bitcoin price due to its limited supply cap.
The statistics show that 67.9% of the Bitcoin supply has not moved in over a year, which is an all-time high. Additionally, it is reported that over half the total Bitcoin supply hasn’t been touched in two years or longer, while 40% has been stationary for three years, and 28% for five years.
Reasons Behind Stagnancy
There are several reasons why such a high percentage of Bitcoins have remained untouched for so long; lost coins accounted for as people may have died with access to their coins vanishing, keys being lost by those living but without access to wallets, as well as Bitcoin initially being just a niche Internet plaything when it was released in 2009 trading for less than $1 per coin.
Price Action & Monetary Tightening
The last 12 months have seen rampant volatility with huge drops from $41k down to $15k before recovering to $28k; further impacted by monetary tightening resulting from near-zero interest rates rising close to 5%.
Despite market turbulence experienced throughout 2020/21 leading up until now, it appears there is still a large portion of investors who are holding on their BTC stashes – with an all time high of 67.9% remaining untouched over one year old – many untraded even after 2+ years or more!