Bitcoin Long-Term Holding Remains Strong Through 2024

Understanding Bitcoin's Dormant Supply: Insights from ARK Invest's "Bitcoin Monthly" Report

The latest report from ARK Invest, titled "Bitcoin Monthly," sheds light on the behavior of Bitcoin holders and the prevailing trend of long-term holding. As we approach the end of 2024, it is evident that the percentage of Bitcoin that remains dormant for extended periods signifies strong confidence among investors.

The Statistics Behind Bitcoin's Dormant Supply

According to the report, the dormancy statistics of Bitcoin are particularly striking:

62% of Bitcoin has been dormant for over one year
53% has remained inactive for over two years
45% has been untouched for more than three years
30% has been dormant for over five years
23% has remained inactive for over seven years
17% has not moved for over ten years
5% has been dormant for over fifteen years

Implications of Long-Term Bitcoin Holding

This data suggests that a significant portion of Bitcoin holders are adopting a long-term investment perspective. The category of dormant supply, which consists of coins that have not been involved in transactions for an extended time, can often indicate a lack of liquidity in the market. Investors may hold these assets in anticipation of higher prices in the future.

Why Are Investors Holding On?

There are several factors contributing to this long-term holding strategy:

Store of Value: Many investors view Bitcoin as a hedge against inflation and economic uncertainty.
Market Maturity: As the cryptocurrency market matures, more investors are likely to see value in holding their assets.
Strategic Investments: Some individuals may have invested in Bitcoin early on and are holding onto their investments as part of a broader strategy.

Conclusion

The findings from ARK Invest's "Bitcoin Monthly" report emphasize the resilience of Bitcoin as a long-term asset. The high percentage of dormant supply illustrates the confidence that investors have in the cryptocurrency's future growth. As Bitcoin continues to gain traction with institutional and individual investors, the long-term holding trend may shape its market dynamics going forward.