On-Chain Highlights
meaning: The percentage of circulating supply that has not moved for at least one year.
Bitcoin's supply was last active over a year ago and has declined recently, reflecting changing market conditions and holder behavior. The percentage of dormant supply has fallen from about 70% in early 2024 to about 66% by late July.
This trend suggests that long-term holders may be shifting their assets in response to market conditions. Additionally, Grayscale GBTC holders have continued to distribute coins in response to the ETF launch in January.
Bitcoin: Percentage of Supply Last active over a year ago: (Source: Glassnode)
Historically, changes in the dormant supply rate have correlated with large price movements. As can be seen on the broader historical chart, long-term trends indicate periods of accumulation and distribution, while the current decline suggests increased liquidity and trading activity.
Bitcoin's price has fluctuated widely during periods of volatility but has generally remained between $60,000 and $70,000 since February, suggesting the market is balanced despite increased activity from previously dormant coins.
This shift in holder behavior highlights the adaptability of the market after major events such as the recent halving, which often prompts strategic reallocation among investors.
