Bitcoin Long-Term Supply

Definition ∞ Bitcoin long-term supply represents the portion of Bitcoin that has remained unmoved in wallets for an extended duration, typically one year or longer. This metric indicates the conviction of holders who are not actively trading their assets. It reflects the scarcity perception and the holding behavior of investors who anticipate future value appreciation.
Context ∞ The long-term supply of Bitcoin is a significant on-chain indicator used to assess market sentiment and potential future price action. An increase in this metric often suggests a strong belief in Bitcoin’s value proposition, reducing available liquid supply and potentially leading to upward price pressure. Analysts closely monitor changes in long-term supply to gauge the overall health and maturity of the Bitcoin market.