Is the coin popular again? 21.6% of Bitcoin supply has not been moved for at least 5 years

According to the latest data released by Coin Metrics, the number of unmoved bitcoins has risen to new highs. Does this mean that Bitcoin is a better means of storing value, or is it still a potential as a trading medium?

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Is hoarding bitcoin popular again?

Today, Matt Odell, co-host of encryption analyst Matt Odell and Crypt podcasts, points out that the number of unmoved bitcoins has grown significantly over the past five years. Odell cited a chart of Coin Metrics, which shows that Bitcoin's “unmoved supply” has recently reached a record high. These untouched or untouched coins are those that have not been transferred from a wallet. The chart measures bitcoin held for 180 days to 2 years.

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The data shows that bitcoin is gradually becoming a means of value storage, not a transaction medium, but the significance of this view varies depending on the individual's purchase of bitcoin. Those who support the "Bitcoin to $100,000" support camp will use the data to support the view that bitcoin is entering the bull market and will be much higher than previous historical highs.

Others, such as Willy Woo, may be concerned that the lack of bitcoin circulation could lead to a decline in volatility, allowing Bitcoin assets to reflect the price movements of commodities such as gold. Earlier today, Adaptive Capital partner and cryptographer Willy Woo posted a chart of Twitter prices over the past century on Twitter.

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In essence, Woo expressed his concern that if the majority of the BTC's share is held by a few rich people, then this group will become a "new banker." The fact that bitcoin supply is limited and large institutional investors are steadily hoarding cryptocurrencies throughout 2018 means that bitcoin is worthy of attention to some extent.

Will “the amount of untraded coins” continue to rise?

Tuur Demeester quickly responded to Odell's tweet. He said: "I'm not sure… In the field of bitcoin, 5 years of not updating your cold storage measures is very long. For a while, it seems to me that most of these coins may have been lost.” Further investigation of the Coin Metrics chart shows that, within the 180-day and 1-year timeframes, compared to the longer time frame, “not moving The number of coins has increased significantly, and this increase corresponds to the price increase of Bitcoin in dollar terms.

Coin Metrics also pointed out:

“Although the supply of BTC has continued to grow, the proportion of BTC supply that has not been active for at least five years to the total supply has recently reached a new high of 21.6%.”

If you understand the data of Coin Metrics literally, then it seems reasonable to increase the number of untouched bitcoins as bitcoin prices continue to rise. However, as bitcoin approaches historical highs, investors who hold Bitcoin for a long time may also withdraw from their positions. When Bitcoin reaches its previous high, these holders are likely to be affected by Bitcoin's future gains and its technical background.