Dormant Bitcoin (BTC) supply hit record-highs as hodlers refrain from selling

Glassnode, an on-chain analytics firm, has recently revealed that massive amounts of Bitcoin supply remain inactive in holder wallets. It added that multiple age bands are touching ATHs. Meanwhile, the balance of Bitcoin held for over a year continues to grow as investors prefer to hodl than sell.

Bitcoin’s increased hodling

Crypto participants continue to hold Bitcoin tokens. Meanwhile, the high inactivity supports the massively low volume throughput. Moreover, Glassnode’s chart reveals hodling upticks in all bands. These are tokens that investors scooped early in 2021 as the bull market started.

Meanwhile, the supply held by long-term investors (BTC) kept for over 155 days) has touched another ATH of 14.46 million. Glassnode added that this shows assets bought after the FTX crash continue to mature, attaining the LTH status.

Furthermore, Bitcoin’s liveliness index, which measures spending and hodling, has declined to the lowest mark since December 2020. That confirms that most market participants prefer hodling at the current market conditions.

Unchained confirmed the narrative of dormant BTC on Tuesday (23 May), revealing that a massive 68.13% of BTC has not moved in more than a year. Generally, Bitcoin prices secure a bottom following seller exhaustion.

Source – Glassnode

Meanwhile, the above observations present a positive picture as far as BTC hodl conviction is concerned. Many market participants aren’t interested in selling their assets at the moment.

However, the crypto space seems primed for imminent market volatility due to the prolonged tight-range price actions. @X_illiquid has tweeted about upcoming weekly volatility. Moreover, Invezz.com reported economic events that will likely move markets this week.

Bitcoin price today

Meantime, the forecasted volatility is yet to manifest, and Bitcoin continues to consolidate. According to Invezz.com, the leading crypto gained 2.62% over the past day to hover at $27,405 at press time. Nonetheless, Bitcoin remains in a constricted weekly range.

The crypto should move past the $27.6K resistance remains essential to escape the trap. Downward actions will take BTC to the closest support of $26.6K, where the crypto has bounced back twice over the last week.

Source – Invezz.com

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