Bitcoin Has A Notable Part Of Its Supply Dormant Since Over Five Years

Data shows the Bitcoin diamond hands have continued to sit tight recently as almost a third of the supply hasn't been moved in five years.

A large portion of the Bitcoin (BTC) supply has remained untouched for over five years now, suggesting these coins belong to investors who have been holding onto them since at least August 2019.

Fresh data from IntoTheBlock shows that almost a third (30.7%) of the total BTC supply is currently held by “long-term holders” (LTHs) who haven’t moved their coins in over five years. These LTHs are defined as investors who have held onto their coins for at least 155 days, making this five-year supply a subset of the LTH cohort.

The longer an investor holds onto their coins, the less likely they become to sell them, according to IntoTheBlock. This is because these investors have a higher conviction in the cryptocurrency and are less likely to be swayed by short-term price movements.

Some of this supply, however, may never return to circulation due to the tokens being lost, whether by simply having their existence forgotten or by having their keys become inaccessible.

The chart below shows the percentage of the Bitcoin supply that has been in this age bracket throughout the cryptocurrency’s history.

Bitcoin 5+ Year LTH Supply Percentage In Circulation. Source: IntoTheBlock

As can be seen in the chart above, the Bitcoin 5+ year LTH supply decreased earlier in the year as some old investors woke up to collect their rally profits, but this decline was only slight, and since then, the indicator has been moving sideways.

At present, the metric's value stands at 30.7%, which means almost a third of the cryptocurrency’s entire supply in circulation hasn’t been moved in more than five years.

For perspective, the five-year cutoff puts the earliest possible buying point for these coins back in August 2019. Thus, these investors have survived at least the COVID-19 crash, the 2021 bull market, the 2022 bear market, and now, the rally that first began in 2023.

Given this resilience, it’s unlikely most of these investors would sell their Bitcoin under anything, but very special circumstances.

After rising to nearly $61,000 on Monday, BTC has seen a plunge of almost 4% over the last 24 hours, which has brought its price down to $58,100 at the time of writing.

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