The percentage of Bitcoin's supply that has not changed for more than five years has risen to a new peak of 28,441%, based on data from Glassnode. This is a substantial improvement above the last peak of 27,983%, which was reached in January 2021.
The indicator shows what portion of Bitcoin's total circulating supply has been dormant for at least five years. This implies that despite recent market volatility and price variations, long-term holders are still holding onto their Bitcoin.
Since it shows that investors are optimistic about Bitcoin's long-term potential, some analysts see this trend as a positive indicator for the cryptocurrency's future. They contend that as there are more "holders," there is less BTC accessible on the market, which might cause a shortage and a spike in price.
Some, on the other hand, warn that the indicator does not give a complete view of the market dynamics. For instance, it's feasible that some BTC owners do not engage in active trading and do not routinely move their coins, as opposed to retaining them as part of a specified long-term investment plan.
It is also important to remember that the price of Bitcoin has been very unpredictable recently, with the cryptocurrency undergoing a number of notable drops and rebounds. Long-term holders may profit from these price fluctuations or modify their investment plans as a result.
Notwithstanding these factors, the rising proportion of idle BTC supply indicates that many Bitcoin investors continue to believe in the future of the cryptocurrency. This may be good news for Bitcoin's future, especially as institutional usage of the cryptocurrency increases.