The year 2023 is slowly coming to an end and Bitcoin (BTC) and Ethereum (ETH), the two strongholds of the crypto industry, have nothing to complain about when it comes to price developments. This year marks not only the end of an ongoing bear market, but also the tentative beginning of a new booming bull market. The latter seems to be particularly important for investors: the active supply of Bitcoin and Ethereum is currently at all-time lows.
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Inactive Bitcoin and Ethereum Offers
Data from The Block shows that a large number of Bitcoins and Ethers remained unmoved last year. While we have seen quite a bit of volatility in both Bitcoin and Ethereum.
To be precise, only 30.12 percent of the circulating BTC supply changed hands last year. For Ethereum the percentage is 39.15 percent.
At its peak, more than 59 percent of Bitcoin supply was active between March 2017 and 2018. Ethereum peaked between July 2016 and 2017 with a total of more than 86 percent.
For Bitcoin, the percentage of active coins is also at an all-time low in the last 3 and 5 years. 58.17 percent were active in the last 3 years and 70.12 percent were active in the last 5 years.
New crypto bull market
Despite the fact that Bitcoin and Ethereum prices have skyrocketed by huge percentages this year, investors don’t seem to be content with that just yet. Many are eyeing the upcoming BTC halving and the possible approval of a Bitcoin exchange fund to spark a new true bull market, just like 2020/2021.
Investors simply assume that they will be able to sell their Bitcoins at a higher price in the coming years and therefore decide to hold on to their Bitcoins for now. If the Bitcoin price enters a parabolic phase in the months following the upcoming halving, as it has in the past, the active supply will also increase significantly.
