Bitcoin supply concentration HHI climbs as long-term holder supply reaches record

Axel Adler Jr said concentration rose to 1,116.1 on July 21 as more coins aged into longer holding bands, while CoinGlass data showed Bitcoin long-term holder supply at a new all-time high.

BTC

Summary

Bitcoin’s supply concentration has risen sharply, with Axel Adler Jr saying the Herfindahl-Hirschman Index reached 1,116.1 as of July 21, above 89.6% of observations over the past decade. Adler said the increase reflected existing coins aging from the 3-6 month band into the 6-12 month band rather than fresh accumulation. Separately, CoinGlass data showed Bitcoin long-term holder supply at a new all-time high, indicating a growing share of BTC is being held off the market. Adler added that 81.6% of supply has not moved for more than six months, while 62.3% has remained dormant for over a year.

Terms & Concepts
  • HHI: Herfindahl-Hirschman Index, a measure of concentration.
  • long-term holder supply: Bitcoin held by investors who keep coins for extended periods.
  • liquid supply: Coins readily available to be traded or sold in the market.