Bitcoin: Exploring the Strange Case of Dormant BTC As Ancient Supplies Worth Billions Await

by James · April 28, 2023

Glassnode’s data showed that 91.7% of Bitcoin’s ancient supply was dormant or lost.
Bitcoin’s current NetFlow trend revealed a higher inflow of BTC into exchanges, indicating more sales than withdrawals.

The rollercoaster of Bitcoin [BTC] value has been nothing short of exciting and unnerving for investors. But here’s a surprising fact: despite all the ups and downs, some parts of the BTC supply have remained dormant, unaffected by the market’s turbulence. Recent data have shed light on this strange phenomenon.

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Table of Contents

Old Bitcoin

Glass nodes data from April 27 revealed a fascinating fact about Bitcoin’s circulation – some parts of the cryptocurrency remained untouched for a staggering seven years or more.

The Ancient Supply calculation from Glassnode has revealed that of the 19.3 million coins currently in circulation, only 4.25 million have achieved the coveted Ancient Supply status.

Even more intriguing was that only 8.3% of the ancient coins (equivalent to 356,000) were used since its inception, leaving a whopping 91.7% (about 3.9 million) dormant or lost.

Source: Glassnode

At today’s Bitcoin price range, the value of these dormant or lost coins amounts to a whopping $113.1 billion.

CoinMarketCap’s data showed that the current market cap of BTC was around $566 billion. This means that if the current ancient supply were to be activated, it could significantly affect both volume and price, potentially altering Bitcoin’s online flow.

Current Bitcoin Netflow Status

Glassnode’s web flow data revealed an interesting trend in the movement of Bitcoin. The chart showed that there was currently a higher number of BTC entering exchanges than leaving them.

In other words, the inflow of BTC into exchanges was currently dominant, indicating more sales than withdrawals.

Source: Glassnode

At the time of writing, the online flow data showed a significant inflow of over 1,300 BTC, indicating that there was still significant selling pressure in the market.

Current price development

Bitcoin made a small but significant recovery on April 27. It climbed back to the $29,000 price range, ending the day’s trade at about $29,500. The closing price represented a value increase of 3.62%.

While it has since experienced a slight pullback, BTC is still hovering in the $29,000 price range.

Source: TradingView

Interestingly, despite the decline, Bitcoin’s short-term moving average (yellow line) continued to provide strong support around the $27,000 price region.

However, it still struggled to break through the psychological barrier at the $30,000 price range. This area has proven to be a significant resistance level in recent months.

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The Ancient Supply of Bitcoin may be dormant, but it is unclear whether this will alter the cryptocurrency’s price break through the projected $100,000 mark.

If prices were to reach this level, holders of Ancient Supply coins could be incentivized to sell their holdings and realize significant gains, which would have a significant impact on the market.