After hitting local lows, the proportion of BTC supply that has been dormant for at least a year appears set to increase.
Data released this week shows that seasoned Bitcoin (BTC) hodlers are about to spark a new price run-up by hoarding BTC.
According to the on-chain monitoring service Glassnode, the Bitcoin supply is about to undergo a new aging process.
The one-year supply has peaked.
Glassnode researchers highlighted its active supply metric, noting that the percentage of Bitcoin supply that hasn’t moved in a year or more is forming a local bottom.
In the past, holders or “hodlers” who had recently sold older coins began accumulating, causing the overall dormant supply age to increase. As a result, there was a “supply squeeze,” in which demand increased relative to the amount of BTC available, and the price benefited as a result. Selling resumed into the local price peak, after which the process was restarted.
A similar circular pattern was visible in late 2017 during Bitcoin’s run to $20,000, and the April 2021 all-time high appears to be no different.
The figures, however, differ between the two years.
“The dormant Bitcoin supply, which has been dormant for at least a year, is beginning to bottom out at 54.2 percent. When compared to the 2017 peak, this indicates that a greater proportion of BTC is still in cold storage,” Glassnode explained.
“However, it also suggests spending fewer coins to ‘put the 2021 top in.’”
There are an increasing number of “hodlers of last resort.”
We frequently report on hodler behavior and different age cohorts of BTC influencing the market.
According to the most recent data, strong hands now control more of the BTC supply than at any time since October 2020.
Speculative traders’ slice of the pie has also seen local resets during deleveraging events this year, such as those in May and September.