Bitcoin Reaches New High with More Than 39% of Supply Remaining Idle for Over 3 Years

04/20/2023 20:11 • NFT Newsflash • 126 views

According to reports, Glassnode data shows that the percentage of BTC supply with a last active period of more than 3 years has just reached 39.755%, setting a new historical high.

The proportion of supply volume with BTC’s last active period of more than 3 years has reached a historic high

The world of cryptocurrency has seen its fair share of rapid fluctuations and sudden changes in value. One of the major players in this market, Bitcoin, has recently reached a new historical high with more than 39% of its supply remaining idle for over 3 years. This is according to reports from Glassnode, a leading on-chain analytics platform that gathers and analyzes data from public blockchains.

What is Bitcoin?

Before diving further into this development, let’s first take a moment to understand what Bitcoin is. Bitcoin is a digital currency that operates on decentralized systems known as blockchain. This means that it is not controlled by any government or financial institution, and transactions occur directly between users. Bitcoin is also often referred to as a “cryptocurrency” due to the cryptographic technology that underpins its security.

The Historical High of Idle BTC Supply

Now, back to the news at hand. As of this recent report, more than 39% of Bitcoin’s supply has not been touched, or “used,” for over 3 years. This is the highest percentage ever recorded in the history of Bitcoin, and it tells us something quite interesting about how people are storing and utilizing this cryptocurrency.
It is important to note that this data is not indicative of how much of Bitcoin’s supply is “lost” or inaccessible. In fact, some of this idle supply may belong to long-term holders who see Bitcoin as a viable store of value, rather than a currency to be spent or traded regularly.

The Significance of Idle Supply

The high percentage of idle Bitcoin supply is significant for several reasons. Firstly, it highlights the idea that many people see Bitcoin as a long-term investment rather than a short-term gain. This is in line with the growing trend of institutional investors like banks and hedge funds turning to cryptocurrencies as a hedge against traditional markets.
Another significance of idle Bitcoin supply is that it reduces the available supply in circulation, which can lead to increased scarcity and potentially drive up the value of Bitcoin. As demand for Bitcoin continues to grow, the limited supply in circulation could lead to higher prices and more investors seeking to enter the market.

Conclusion

The recent report from Glassnode is a fascinating development for Bitcoin and the cryptocurrency market as a whole. As we continue to see increased interest in digital currencies, it will be interesting to see how the percentages of idle supply evolve over time and what impact this may have on the overall value of cryptocurrencies.

Frequently Asked Questions

Q: Does this high percentage of idle supply mean that Bitcoin is losing popularity?
A: No, this actually suggests that Bitcoin is becoming even more valuable and desirable as an investment.
Q: What is the difference between idle supply and lost supply?
A: Idle supply is simply Bitcoin that has not been moved or used for a period of time, while lost supply refers to Bitcoin that is no longer accessible due to lost keys or other technical issues.
Q: Can Bitcoin’s value continue to increase if so much of the supply is idle?
A: Yes, if demand for Bitcoin increases while the available supply remains limited, the value of Bitcoin can continue to climb.

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