75% of Bitcoin in circulation has not been moved in six months: Glassnode

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About 75% of Bitcoin in circulation has been dormant for at least six months, according to Glassnode’s HODL Waves chart, which provides insight into investor holding behavior over time.

The figure represents an increase from last week, with only about 45 percent of Bitcoin in circulation not being moved in the same period, Glassnode data showed.

The high percentage of latent Bitcoin suggests a strong holding trend among investors, often associated with a strong belief in the future value of Bitcoin.

The price of Bitcoin (BTC) has fallen more than 10% in the past month, TradingView data shows. However, the top crypto has still seen a 12% increase over the past six months. BTC is hovering around $58,000 at press time after missing the key $60,000 level.

With much of Bitcoin sitting still, the amount of liquidity available for trading is diminished. This could increase prices if demand continues to increase.

On-chain analyst James Check noted that more than 80% of short-term Bitcoin holders are currently experiencing losses after buying at higher prices. He warned that this could lead to panic selling, similar to the patterns seen in 2018, 2019 and mid-2021.

Bitcoin miners may not complete the sale

CryptoQuant’s weekly crypto report suggested that the Bitcoin miner capitulation could occur during the week of August 5, as daily miner flows rose to 19,000 BTC. Miners may offload reserves to cope with tight profit margins, which fell to 25 percent, the lowest since Jan. 22.

CryptoQuant noted that miners may continue to sell their BTC reserves as they are still underpaid amid falling prices and increasing mining difficulty.

“CryptoQuant’s Miner Profit/Loss Sustainability Value continues to show that miners are underpaid, especially as mining difficulty has continued to rise (hitting record highs in late July) while prices have fallen,” he writes the report.

Miner capitulation events historically align with local price lows during Bitcoin markets, as highlighted in March 2023 following the sale of the Silicon Valley bank and in January 2024 following the debut of US Bitcoin exchange-traded spot funds.

Bitcoin hit a record high of $73,000 in mid-March this year ahead of its fourth halving, which was seen as different compared to previous cycles.

The overall market sentiment has not yet improved. According to Alternative.me, the Bitcoin Fear & Greed Index fell to 28 on August 19, moving from the “extreme fear” seen earlier this month to “fear.”

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