BTC’s last active 5-7 years of supply hit a 5-year high

According to reports, Glassnodes data shows that the supply of BTC with the last active time of 5-7 years has just reached 1612189.628 BTC, a new five-year high.

Interpretation of this information:

Bitcoin (BTC), the world’s most popular cryptocurrency, has been in circulation for over a decade. One interesting aspect of BTC is its blockchain technology, which records every transaction ever made on the network. Through this technology, analysts can track and analyze the movement of BTC across various timelines. Using Glassnodes data, it has been identified that the supply of BTC that has not been transacted in the past 5 to 7 years has reached a five-year high of 1,612,189.628 BTC.

This observation can be interpreted in many ways. One possible explanation is that a significant number of BTC holders holding coins for more than five years have either lost their wallets or choose to hold on to their coins. This may result in restricting the total number of BTC available for trade. In the simple market demand and supply equation, when the supply is low, and the demand is high, the price of the commodity usually increases.

Another possibility is that long-term BTC holders are not interested in selling their coins at current prices, and it’s indicative of their confidence in BTC’s long-term prospects. In this case, the market may be relatively stable in the short term but poised for upward price movements in the future. Supporters of BTC have argued that it is a digital store of value, akin to gold, that is not subject to inflationary pressures resulting from government policies.

It’s worth noting that purchase volumes and trade volumes of BTC have seen a gain of 43.8% and 94.7% year-to-date, indicating that BTC has been gaining momentum in the market. This surge in demand may lead to increased prices, especially if the supply of available coins decreases, and fewer coins are sold into the market.

In conclusion, the supply of BTC inactive for 5 to 7 years reaching a five-year high shows that a significant proportion of BTC may not be up for sale, either because of loss or holder confidence in BTC’s long-term prospects. The surge in BTC’s purchase and trade volumes likely reflects growing demand for BTC. The three keywords from this analysis are BTC, supply, and demand.