Bitcoin older than 6 months is currently in a dormant state

It is reported that the total supply of bitcoins older than 6 months has reached 14.993 million, close to the historical peak (ATH is 15.029 million), while the total supply of bitcoins younger than 6 months has not increased significantly since 2023, hovering around 4.298 million BTCs, which means that bitcoins older than 6 months are generally in a dormant state. In addition, Glassnode also found that only 4.123% of all the transactions sold were Bitcoin older than 6 months.

Interpretation of this information:

The message pertains to the current state of Bitcoin supply and demand. The report states that the total supply of Bitcoin older than 6 months has nearly reached the all-time high of 15.029 million. However, the total supply of Bitcoin younger than 6 months has not seen significant growth lately, hovering around 4.298 million, indicating that Bitcoins older than six months remain inactive. Furthermore, Glassnode, a blockchain analysis firm, has discovered that only 4.123% of all Bitcoin transactions sold are older than 6 months.

The first part of the report suggests that the majority of Bitcoin in circulation may be in a dormant state. The fact that the supply of Bitcoin older than 6 months is almost at its all-time high may indicate that holders are not selling their coins as the value of Bitcoin increases, or some users may have lost their private keys or forgotten their passphrase. In general, the current situation can be seen as a positive indicator for Bitcoin’s future value as it becomes scarcer when the trading volume decreases.

The Glassnode’s data on the transactions of Bitcoins older than six months implies that long-term investors hold their coins and do not panic-sell amid price fluctuations. This perspective reinforces the assumption that Bitcoin is primarily used for long-term investment purposes. However, this also suggests that the younger generations might not be that interested in Bitcoin as they do not hold Bitcoin for longer than six months.

In conclusion, the current Bitcoin situation can be interpreted as a positive sign for Bitcoin’s value as some Bitcoin remains inactive, and long-term investors hold on to their coins, resisting the urge to panic-sell. However, the dormant state of older Bitcoins might also indicate the loss of Bitcoin’s passphrase or forgotten private keys. The three keywords that summarize the content include Bitcoin supply, dormant state, and long-term investment.