Old Bitcoin (BTC) Supply Climbs Sharply

Long-term Bitcoin holders have stopped spending their digital assets. The data from crypto analytics platform, Glassnode indicates that the overall percentage of BTC supply last active almost 5 years ago reached 23.15%, which is the highest level on record.

The numbers highlight a strong holding trend among BTC whales. Despite the latest plunge in the crypto market, Bitcoin whales are avoiding panic selling. Additionally, coins older than 12 months have spiked by nearly 5.4% in the last three months.

“BTC supply older than 1yr has steeply increased since Oct 2021, rising by 5.4% of circulating BTC. This indicates that 5.4% of the supply was last moved in the early bull from Oct 2020 to Jan 2021, and remains held in those wallets,” Glassnode noted.

While dormant BTC accounts have climbed substantially in the last few months, crypto addresses with at least 0.01 BTC have also spiked. According to Glassnode, 9.4 million addresses are currently holding more than 0.01 Bitcoin.

Crypto Plunge

The correction across the digital asset market accelerated on Friday after BTC and Ethereum failed to retain key price levels. Bitcoin plunged below $38,500 while ETH lost the price level of $2,800. Commenting on the market correction and Russia’s potential ban on crypto mining, Marcus Sotiriou, an Analyst at GlobalBlock, said: “The news about Russia potentially banning crypto mining is significant considering Russia’s crypto trading volume last year was reportedly $5 billion, and a ban will heavily impact this. I do not think they will be able to completely stop crypto trading activity in Russia though.”

“We have seen China attempt to ban crypto trading multiple times over the past few years, yet China remains one of the most active countries for crypto. It is important to note that the crypto fear and greed index remains at extreme levels of fear. This usually represents a buying opportunity,” Sotiriou added.