65% of bitcoins have not been moved in the past year. This is according to Glassnode data seen by Cryptoinfowatch on Monday, August 29. This is an indication that a large chunk of Bitcoin supply is being held by holders who do not regularly trade them. This class of people are popularly called hodlers within crypto circles.
And Some Bitcoins Are Lost
The data however did not take account of the fact that some bitcoins are lost because their owners lost access to them. This was expressed by a user that goes by the name, NatureGlitch. According to him,
“A great amount of #Bitcoin is also considered “lost” and therefore incapable of ever being moved.
Many forget that when it comes to these charts and fail to mention “lost” coins are included.”
It is obvious that there’s no way of telling which bitcoins are lost and those that the owners willingly have not moved for reasons best known to them.
Satoshi Nakamoto, the Bitcoin inventor, has one million bitcoins to his name. His coins are also among those that have not been moved.
Some Coins Are Moved But Not Traded
Kristian Kho @Kristian_Kho said that there are holders who move their coins between wallets without trading them. In other words, unmoved coins are not the only ones that are not being traded by their owners. Using himself as an instance, he said,
“I just moved my btc around to some fresh addresses, won’t show up as part of this 65% but I sure am not selling.”
The same Glassnode data shows that 13% of all bitcoins have not moved from their wallets in the past 10 years. According to The Path of Bitcoin, a user who pointed this out from Glassnode, it is safe to assume that those are the lost bitcoins and consequently, reduced supply to the market.
JP @javatime05, said that based on the data, the Bitcoin market price is determined by people holding just 35% of the coins.
For various reasons, some Bitcoin addresses have not been active over the past 12 months despite holding a sizable amount of funds in digital assets.
No Impact On BTC Price
According to data by Bitinfocharts the number of bitcoin held in inactive addresses over the last five years is as high as 17.87 million BTC, as of August 2022. More bitcoins being inactive means they are being held in wallets and not traded. So they have no impact on market price of the asset.
Hodling is an investment strategy commonly used by cryptocurrency investors. These buy and hold digital assets for an extended period of time for future profits. They account for a larger chunk of the 65% inactive bitcoin, while some inactive cryptocurrency accounts are mainly due to inaccessibility by the holders.
This happens, if individuals or cryptocurrency investors fail to recall or lose their wallets passwords and could not reset their account due to security measures.
In addition, hacked Bitcoin wallets and stolen bitcoins may become inactive, in order to evade being arrested or investigated for theft and cyber-related crimes. However good or bad this inactivity might be, it definitely has an impact on the cryptocurrency market and investors.
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