Markets
Bitcoin’s “hidden or lost coins” metric falls to 7.7 million BTC
Onchain Highlights
DEFINITION: Lost or HODLed Bitcoins indicate movements of large and old caches. They are calculated by subtracting Liveliness starting from 1 and multiplying the result by the quantity in circulation.
Bitcoin’s “hodled or lost coins” metric, as tracked by Glassnode, has reached notable levels, reflecting long-term trends in investor behavior. Glassnode estimates that approximately 7.7 million BTC are either stranded or lost, significantly impacting circulating supply and market forces.
Bitcoin: hidden or lost coins: (Source: Glassnode)
In recent months, the metric has shown a decrease in the number of hidden or lost coins, especially in 2024. This change suggests a possible reassignment Bitcoin holdings as investors react to market conditions after the halving. The last significant drop occurred in May, coinciding with Mount Gox. moving Bitcoin to a new wallet. Since January, there has also been a gradual decline, correlating with selling pressure from Grayscale, which held Bitcoin that could have been considered “hodled.”
Data from Glassnode highlights that periods of increased hodling generally correlate with a reduction in selling pressure, potentially leading to bullish price action. For example, in previous bear markets, an increase in hodling often preceded a significant price recovery.
According to CryptoSlate’s analysis, the current trend may reflect strategic decisions made by long-term holders to hold or consolidate their positions in anticipation of future market movements (CryptoSlate). This behavior highlights the importance of monitoring on-chain metrics to understand broader market sentiments and investor strategies.