Old BTC Supply Hits All-Time High

Dormant BTC addresses are rising sharply in the latest crypto winter. According to the data published by Glassnode, a prominent on-chain analysis platform, Bitcoin supply that was last active at least 10 years ago touched another all-time high of 2,460,929 BTC on 28 June 2022.

The figure has been rising consistently since the start of 2022. In October 2021, the total number of dormant BTC addresses (last active in 2011) stood at around 2 million. The number indicates that more users are holding Bitcoin for a longer period.

On 29 June 2022, the total market cap of Bitcoin dropped below $380 billion, compared to nearly $1.2 trillion in November 2021. In the last 24 hours, the crypto asset has dipped by more than 5%. BTC’s crypto market dominance is also plunging.

CoinShares, a leading digital asset management firm, published its weekly crypto flows report earlier this week and highlighted historic outflows from BTC investment products. Almost $453 million worth of investment has left Bitcoin products in just 7 days.

Inflation and Bitcoin

According to the Market Analysis Team at Bitfinex, fears around global recession and rising inflation is putting more pressure on the world’s largest crypto asset.

“A narrative that could well play out for the rest of the year and beyond is guiding bitcoin lower today, looming recession and mushrooming levels of inflation. As the blunt tools of Central Banks have not yet fed through in curbing inflation, we can expect to see more volatility across the digital token economy in the months to come. The nervous sentiment that has already engulfed stocks and bonds also appears to be creeping into the global property market. We can expect continued pressure on bitcoin until the wider macro-economy shows some sign of stabilization,” the team mentioned in its recent report shared with Finance Magnates.