Bitcoin hodlers (BTC) are preparing for a rally like the one that led to historic peaks of USD 20,000 in 2017, a metric suggests.
According to the Glassnode on-chain monitoring resource on June 28, the proportion of the Bitcoin supply that has not left its wallet in a year or more is equal to that of 2016.
BTC channels inactive in 2016
Despite a turbulent year for Bitcoin’s price action, data shows that more than 61% of the supply remained dormant through ups and downs.
Bitcoin’s ‚Hodl Wave‘ data indicates an upward trend
This is a record, added Dan Held, director of business development for the U.S. exchange Kraken.
Glassnode noted that early in 2016 similar behavior was also recorded among hodlers. 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 hadn’t moved in over a year was in early 2016, preceding the $BTC upward trend to $20k,“ Glassnode summarized on Twitter.
The phenomenon of Bitcoin inversion cycles is often referred to as „hodl waves“. As Cointelegraph reported in May, the data has shown similarity to 2016 for a long time.
By comparison, last year’s rally to USD 14,000 saw inactive supply levels reach 56%. However, unlike 2016, there was no period of calm between the dormant supply peak and the upward trend.
The number of Bitcoin whales increased after the halving
The road to the 2017 record only really began as more than a latency period of about a year.
Paving the way for new records
Several other indicators have pointed to a saving mentality prevailing in Bitcoin. Exchange reserves are at a minimum of 13 months, while signs of accumulation are visible in wallets with small, whale-sized balances.
Do you have 10 BTC? You’re now in 0.5% of the 30 million Bitcoin addresses
In early June, Glassnode showed that 90% of the days were spent cumulatively in the first half of 2020.
Since the halving of the subsidy per block in May, meanwhile, the number of whales, entities with a balance of 1,000 Ethereum Code 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.