75% of Bitcoin Still Held Tightly in the Past 6 Months

Although Bitcoin is down 21% from its all-time high, the majority of the coin has remained in wallets for the past 6 months.

About three-quarters of Bitcoin in circulation have been "inactive" for at least the past 6 months. This is according to the Hodl Wave chart from Glassnode, a blockchain analytics tool that provides a time-lapse view of Bitcoin.
Compared to last week, on August 11, Glassnode reflected that only 45% of Bitcoin was locked up in the first half of 2024. This ratio has now increased to 74%, even though Bitcoin is down 21% from its all-time high.

The indicator shows that long-term investors are holding on to BTC as a store of value, expecting future price increases. This trend also reduces the supply of Bitcoin on the market, which could lead to a price increase as demand increases while supply remains tight.

In an article on X on August 19, on-chain analyst James Check pointed out that more than 80% of short-term investors are currently losing money, as their Bitcoin purchase price is higher than the current price.
He also warned that this could lead to a deep price drop if investors panic sell, similar to what has happened in the past. Short-term investors here refer to those who have held BTC for less than 155 days.
Market sentiment remains quite negative, with Bitcoin's Fear & Greed Index at 28. The index has returned to a low not seen since December 2022. Bitcoin's price approached $60,000 over the weekend, but has now fallen to $58,512 at press time.