Bitcoin (BTC) hodlers are gearing up for a bull run like the one that led to all-time highs of $ 20,000 in 2017, one metric suggests.
According to the Glassnode on-chain monitoring resource on June 28, the proportion of Bitcoin’s supply that hasn’t left its wallet in a year or more reflects 2016.
Inactive BTC channels 2016
Despite a hectic year for Bitcoin’s price action, the data shows that more than 61% of supply remained idle through ups and downs.
This is a record, added Dan Held, Kraken’s director of business development for the US exchange, Dan Held.
Glassnode noted that similar behavior was also reported among hodlers in early 2016. The implication is that there is a reluctance to trade or sell and a belief that it will be more profitable to save.
“The last time we saw this amount of #Bitcoin that had not budged in over a year, was in early 2016, before the $ BTC run to $ 20k,” Glassnode summarized on Twitter.
Bitcoin supply activity graph. Source: Glassnode / Twitter
The phenomenon of Bitcoin investment cycles is often referred to as “hodl waves”. As Cointelegraph reported in May, the data has paralleled 2016 for a long time.
In comparison, last year’s race to $ 14,000 saw inactive supply levels reach 56%. However, unlike 2016, there was no cooling period between the inactive supply peak and the bullfight.
The path to the 2017 record only really started more than a latency period of around a year.
Paving the way for new records
Several other indicators have pointed to a saving mindset that prevails in Bitcoin. Foreign exchange reserves are at a 13-month low, while signs of accumulation are visible on wallets with small, whale-sized balances.
In early June, Glassnode showed that 90% of the days were spent piling up in the first half of 2020.
Since the May block subsidy reduction, meanwhile, the number of whales, entities with a balance of 1,000 BTC or more, has increased by more than 2%.
However, a hodler only needs a balance of 1 BTC to be in the top 3% of all Bitcoin addresses.
