Metric loss

Bitcoin hits a new all-time high on this metric: Details

Arman Shirinyan

Long-term holders stopped spending their coins after a sell-off in the cryptocurrency market

While Bitcoin is still consolidating around the first resistance levels seen since the reversal from around $28,500, the on-chain metric shows a new all-time high of 4.45 million BTC unchanged for over five years, according to glass knot.

The supply of long-term holders is one of the best metrics to determine the sentiment of long-term investors and those who view Bitcoin as a store of value rather than a speculative asset.

The increase in idle supply could suggest that Bitcoin has actually entered an accumulation phase after an active distribution since November. According to the graph, we have seen a strong decrease in idle supply in the middle of 2021 so far.

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Why is the inactive offer important?

The number of inactive coins on the network could serve as both a social and a market indicator. As mentioned, long-term holder sentiment is easy to determine, but additionally, the Bitcoin Supply Last Active 5+ years ago may reflect the pressure being exerted on the market.

Bitcoin Chart
Source: TradingView

The decrease in the number of idle coins on the network usually correlates with bearish market trends, as even long-term holders abandon their coins to avoid losses or to break even on their positions.

The highest spend rate of long-term supply is usually seen around the highs of a rally or during a market sell-off, when panic reigns among all types of investors.

With long-term supply spending normalizing, we saw an almost immediate return to Bitcoin, which gained more than 10% from its value last week. Unfortunately, the rally slowed down as Bitcoin failed to reach the 50-day moving average.