More Than Half Of All BTC Has Not Moved In Over Two Years

A potential disruption in Bitcoin (BTC) supply is looming, evident via on chain data revealing that approximately 57% of all BTC has remained inactive for a minimum of two years. Capriole Investments founder Charles Edwards highlighted this trend, emphasizing that the long term holders (LTHs), individuals holding Bitcoin for at least 155 days, include those with a substantial portion of the stagnant supply.

A Noteworthy Pattern

As a statistical observation, coins held by long term holders tend to remain untouched on the blockchain, showcasing a reluctance to move. The aforementioned two years segment comprises investors with an even more resolute commitment, as their holding period surpasses the 155 day mark.

Since the FTX collapse, the supply held by these LTHs has consistently achieved new all time highs, although the recent growth has slightly decelerated. Currently, approximately 57% of Bitcoin is under the control of these committed holders.

Supply Shock May Intensify

Charles Edwards underscores the significant impact of this situation, creating a substantial supply squeeze in the cryptocurrency market. He also draws attention to a historical pattern, noting that similar trends have preceded previous bull runs, indicated by green lines on the chart.

In a noteworthy development, the United States SEC recently granted approval for Bitcoin spot ETFs. Edwards suggests that this approval might intensify the supply shock, emphasizing that the ETFs are approved only for cash subscriptions, leading to a continuous reduction in available Bitcoin on the market. Additionally, chart analyst James V. Straten suggests that this approval could offer another perspective on the brewing supply shock in the asset.