Inactive BTC share for a year started to decline after the approval of BTC ETFs

The indicator has already reached an 18-month low

09.04.2024 - 14:51

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What’s new? The share of bitcoins inactive for a year or more has fallen to its lowest since October 2022 to 65,8%, according to data from analytics platform Glassnode. The drop in the figure can be attributed to profit taking by investors who previously held coins for 12 months or more.

Material by CoinDesk

What else is known? As of April 8, 12,95 million coins remained inactive for a year or more, while the circulating supply is 19,7 million. The indicator peaked above 70% at the time of the launch of spot bitcoin exchange-traded funds (ETFs) in the United States on January 11, but since then has shown a decline. In addition, since late December, the percentage of BTC inactive for two or more years has fallen from 57,4% to 54%.

The desire to sell is likely due to bitcoin’s rally: since April last year, its rate has risen by 148% and 50% since the start of trading in BTC ETF shares on US exchanges. On March 14, bitcoin hit an all-time high of $73 798, but has since corrected by 4% to trade at $70 891.

More inactive bitcoins means more coins are being held rather than sold, leading to increased demand and a higher exchange rate. According to the MacroMicro portal, a decrease in the percentage of inactive bitcoins is a “leading indicator for the end of the bull run.” However, historical data shows that bull markets tend to peak when the percentage of inactive supply bottoms out and begins to rise.

Earlier, Deutsche Bank conducted a customer survey in which one-third of respondents said they expect BTC to fall below $20 000.

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