According to a report from CoinDesk, citing blockchain analytics company Glassnode, the percentage of Bitcoin supply that has not moved on-chain for at least one year has dropped to its lowest level since October 2022, potentially signaling an impending correction in the bull market.
The data shows that yesterday, approximately 12.95 million Bitcoins, equivalent to 65.84% of the circulating supply (around 19.67 million Bitcoins), have remained unchanged for over a year, the lowest percentage since October 2022. This indicator had surpassed 70% when the launch of spot ETF was approved in mid-January in the United States, and has been declining since then. Since the end of December last year, the percentage of supply that has not moved for at least two years has decreased from 57.4% to 54%.
This downward trend likely indicates that investors who have held Bitcoin for a year or longer are taking profits. However, it should be emphasized that this data cannot determine the proportion of these inactive Bitcoins leaving the market through liquidation. Nevertheless, historical data suggests that the decrease in the percentage of inactive Bitcoins is a “leading indicator of the end of a bull market”. And when the percentage of inactive supply bottoms out and starts to rise, the bull market often reaches its peak.
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