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Bitcoin’s “coins kept or lost” metric drops to 7.7 million BTC
Onchain Highlights
DEFINITION: Lost or HODLed Bitcoins indicate moves of large, old stocks. They are calculated by subtracting Liveliness by 1 and multiplying the result by the circulating supply.
Bitcoin’s “Hodled or Lost Coins” metric, tracked by Glassnode, has reached notable levels, reflecting long-term trends in investor behavior. Glassnode estimates that approximately 7.7 million BTC are locked or lost, significantly impacting circulating supply and market forces.
Bitcoin: Coins Kept or Lost: (Source: Glassnode)
In recent months, the metric has shown a decrease in coins retained or lost, particularly in 2024. This change suggests a possible reallocation of Bitcoin holdings as investors respond to market conditions post-halving. The last significant drop occurred in May, coinciding with Mt. Gox in movement Bitcoin in a new wallet. There has also been a gradual decline since January, related to selling pressure from Grayscale, which held Bitcoin that may have been deemed “hodle.”
Data from Glassnode highlights that periods of increased hodling are typically correlated with reduced selling pressure, potentially leading to bullish price action. For example, during previous bear markets, increased hodling activity often preceded significant price rallies.
According to CryptoSlate’s analysis, the current trend may reflect strategic decisions by long-term holders to maintain or consolidate their positions in anticipation of future market movements (CryptoSlate). This behavior highlights the importance of monitoring on-chain metrics to understand broader market sentiments and investor strategies.
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