On-Chain Highlights
Definition: The total amount of coins that have not been used for at least one year and have been returned to circulation. In other words, the total transfer of coins that have not been used for more than a year.
Bitcoin's revived supply, which follows a reactivation of coins that have been dormant for over a year, has seen notable fluctuations in 2024, particularly in April and June, when the price of Bitcoin periodically spiked as it approached its post-halving highs. These moves suggest that some long-term holders have seized the opportunities presented by the market rally, a behavior seen in past cycles.
Historically, large increases in resupply have often coincided with major price movements, such as the bull run of late 2017 and the 2021 surge. However, compared to previous periods, the 2024 surge was less pronounced and reflects a broader trend of declining resupply since Bitcoin's 2021 peak.
This decline suggests a change in behavior among long-term holders, possibly indicating greater conviction in holding or a more strategic approach to market participation as Bitcoin matures as an asset class. This continuing trend contrasts with the more volatile supply movements observed in previous market cycles.
