BTC Supply that has been Active for More Than Five Years Just Reached a Record High

02/24/2023 20:59 • Crypto & Markets • 60 views

It is reported that according to the data of Glssnode, the percentage of supply of BTC that has been active for more than five years has just reached a record high of 28.215%.

BTC’s last active supply for more than 5 years reached a record high

Bitcoin has been the talk of the town for quite some time now. The high volatility and fluctuations of this digital asset have made it the hot topic in the financial market. It has also become a popular way to invest for long-term investors. Recently, it has been reported that the percentage of supply of BTC that has been active for more than five years has just reached a record high of 28.215%. This article will discuss what this trend means and why it is significant.

Understanding the Concept of BTC Supply

The supply of Bitcoin refers to the number of coins that are currently in the market. As Bitcoin is a decentralized digital currency, it has a limited supply of 21 million coins. The supply is determined by the rate of mining, where new coins are released in a controlled manner, and the reward for mining is halved every four years. The supply rate will ultimately reach zero, and all coins that will be in circulation will have already been mined.

BTC Supply That Has Been Active for More Than Five Years

The active supply refers to the number of coins that have been moved or spent from their wallet in the last five years. The coins that have not moved in this period are considered inactive. Recently, the percentage of supply of BTC that has been active for more than five years has just reached a record high of 28.215%. This means that more than a quarter of the total supply has been dormant or unmoved for more than five years.

What Does this Trend Mean?

This trend is significant for several reasons. Firstly, it suggests that long-term investors are holding on to their assets, and they have faith in the potential of Bitcoin. It also indicates that some investors may be waiting for the price of Bitcoin to rise in the future before selling, which would further increase demand and scarcity of the cryptocurrency. It is also worth noting that this percentage includes the Bitcoin holdings of Satoshi Nakamoto, the mysterious founder of Bitcoin, who is estimated to have one million coins, which have not been moved since 2009.

Importance of the Record High Active BTC Supply

The significance of the high active BTC supply lies in its potential impact on the price of Bitcoin. As more coins are held in dormant wallets, fewer coins are available for trading, which could drive the price of Bitcoin higher due to increased scarcity. However, it is important to note that Bitcoin still faces significant price volatility, and this trend may not necessarily predict a rise in the price immediately.

Conclusion

In conclusion, the record high percentage of supply of BTC that has been active for more than five years indicates a growing number of long-term investors that continue to hold on to their assets. This trend could potentially increase the demand for Bitcoin and, in turn, make it more scarce and valuable. However, it is essential to remember that Bitcoin’s value is influenced by a host of other factors and that price volatility is always a possibility.

FAQs

1. What is BTC’s current market cap, and how does it compare to other cryptocurrencies?
The current market cap of Bitcoin is around $1 trillion, making it the most valuable cryptocurrency by far.
2. Can Bitcoin’s supply rate change in the future?
No, the supply of Bitcoin is fixed at 21 million, and only a certain number of coins are released every ten minutes through the mining process.
3. Is Bitcoin a safe investment?
As with any investment, there are risks involved, and investors should do their research and proceed with caution. However, many believe that Bitcoin has the potential to be a valuable asset in a diversified investment portfolio.

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