Bitcoin
Bitcoin’s ‘hidden or lost coins’ metric drops to 7.7 million BTC
Highlights in the chain
DEFINITION: Lost or HODLed Bitcoins indicate movements from large and old stashes. They are calculated by subtracting Vivacity of 1 and multiplying the result by the circulating supply.
Bitcoin’s “Hodled or Lost Coins” metric, as monitored by Glassnode, has reached notable levels, reflecting long-term trends in investor behavior. Glassnode estimates that approximately 7.7 million BTC is held or lost, significantly impacting circulating supply and market forces.
Bitcoin: Hodled or Lost Coins: (Source: Glassnode)
In recent months, the metric has shown a decrease in hidden or lost coins, especially in 2024. This change suggests a possible relocation of Bitcoin holdings as investors respond to market conditions following the halving. The last significant decline occurred in May, coinciding with Mt. in motion Bitcoin to a new wallet. Since January, there has also been a gradual decline, correlated with selling pressure from Grayscale, which held Bitcoin that may have been considered “hodled”.
Glassnode data highlights that periods of increased hodling typically correlate with reduced selling pressure, potentially leading to bullish price action. For example, during previous bear markets, increased hodling often preceded significant price recoveries.
According to CryptoSlate analysis, the current trend may reflect strategic decisions by long-term holders to maintain or consolidate their positions in anticipation of future market movements (CriptoSlate). This behavior emphasizes the importance of monitoring network metrics to understand broader market sentiments and investor strategies.
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