According to data tracked by blockchain analytics company Glassnode, the percentage of Bitcoin circulating supply that has not moved on-chain for at least a year has dropped to its lowest level since October 2022, potentially signaling an impending correction in the bull market.
The data shows that yesterday, approximately 12.95 million Bitcoins, equivalent to 65.84% of the circulating supply (around 19.67 million Bitcoins), remained unchanged for over a year. This is the lowest percentage since October 2022. This indicator previously exceeded 70% when the launch of spot ETF was approved in mid-January, and has been declining ever since. The percentage of circulating supply that has not moved for at least two years has dropped from 57.4% at the end of December last year to 54%.
This downward trend likely indicates that investors holding Bitcoin for a year or longer are taking profits. However, it should be emphasized that this data does not determine how much of the Bitcoin leaving inactive addresses is being liquidated in the market. Nevertheless, historical data suggests that a decrease in the percentage of inactive Bitcoin is a “prospective indicator of the end of a bull market”. And when the percentage of inactive supply reaches its bottom and starts to rise, the bull market often reaches its peak.
