Faithful Holders: 30.7% of Bitcoin Supply Remains Unchanged for 5+ Years

The Unwavering Faith of Bitcoin’s Original Investors

A staggering 30.7% of Bitcoin’s supply has remained unchanged for more than five years, despite recent market volatility. This considerable quantity of inactive coins is evidence of the resilience of long-term holders (LTHs) who have acquiesced to numerous market crashes, such as the COVID-19 crash, the 2021 bull market, the 2022 bear market, and the 2023 rally, and are now committed to investing.

The UXOs that constitute this dormant supply have also aged beyond five years, indicating the loyalty of these holders to their investment. The term “HODLing” is frequently used to describe this phenomenon, which was first introduced by Bitcoin in the early days. It has become synonymous with long-term cryptocurrency investment and one of the key features of LTHs is their reduced tendency to sell their coins as time goes on.

This is reflected in fact, since the cryptocurrency’s price has continued to fluctuate, the supply remains constant even though it had been in existence for over five years. Although some of these coins may be lost or unusable, the majority of them are expected to be held by dedicated investors who are not affected by short-term market fluctuations.

The earliest possible buying point for these coin notes dates back to August 2019, when Bitcoin’s price was significantly lower than its current level. Bitcoin’s price has experienced a rapid decline of almost 4% in the past 24 hours, and it currently stands at $58,100. This represents an impressive display of belief and perseverance as much as the fact that so much of its supply has been stagnant for such ages.

The strong sway of LTHs, who are often motivated by their understanding of the cryptocurrency’s technology and its potential for long-term success, is evident in this instance. This also has far-reaching consequences for the wider cryptocurrency market. As LThs tighten their grip on Bitcoin, they are effectively cutting back its circulating supply, which can have a positive effect on its price over time.

The reason for this is that a shortage of supplies can cause demand to rise, leading to higher prices. This phenomenon is known as HODLing mentality, and Bitcoin is an example of this approach among long-term investors in other asset classes.

However, the decentralized nature of Bitcoin and its lack of institutional backing make it highly susceptible to price fluctuations. Accordingly, LTHs’ dedication to the market is crucial for stability and future prosperity.

Furthermore, the fact that 30.7% of Bitcoin’s supply has remained unchanged for over five years is a clear indication of the power and determination of its long-term owners. As cryptocurrency continues to navigate the intricacies of global finance, it will be pivotal in determining the fate of this digital currency.

For more insights and information on the cryptocurrency market, read our article on Bitcoin price prediction and stay up-to-date with the latest trends and analysis.