The number of “hodled” and presumably lost Bitcoin tokens continues to surge in sync with the BTC price.
A yearlong price rally in the Bitcoin (BTC) market and hopes for more upside moves in the future has prompted traders to hold the token instead of trading it for other assets, Glassnode data shows.
The blockchain data analytics service revealed on Oct. 28 that the total amount of “hodled or lost coins” reached a nine-month high of over 7.21 million BTC. In simple terms, the Bitcoin metric reflected an increase in out-of-circulation tokens — those that may have been stored in cold wallets by long-term holders or lost due to human errors, with little chance of recovery.
As a result, the total number of lost/hodled Bitcoin exceeded 34% of its total supply of 21 million tokens, making the cryptocurrency more scarce.
More evidence of a Bitcoin supply shock
Further data provided by CryptoQuant showed that the amount of Bitcoin reserves held across all the crypto exchanges dropped to its lowest level since August 2018 — at 2.337 million BTC on Oct. 28, 2021.
Meanwhile, the Miners Position Index (MPI), which measures the ratio of BTC leaving all miners’ wallets to its 1-year moving average, has been trading below zero since March 6, 2021, suggesting strong accumulation among miners.