Analyst: Bitcoin’s supply holding cycle continues to lengthen, and the Herfindahl index hits a new high since December 2021

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Golden Finance reported that on July 21, Cryptoquant analyst Axel Adler Jr released a market analysis saying that as of July 21, the Herfindahl–Hirschman Index (HHI) value reached 1116.1. This figure is higher than 89.6% of historical observations from the past ten years and has refreshed the peak since December 2021.
Over the past 90 days, the index rose 5.5%, and over the past 180 days it has increased by 10.1%. The evenness of Bitcoin supply distribution has continued to decline, with coins becoming more concentrated in certain holding-period cohorts. The core upward driving force behind the index is the 6–12 month holding-period chips; within 90 days, the share of 6–12 month holding chips increased from 12.9% to 19.3%. The share of 3–6 month holding chips fell from 14.3% to 6.3%, and long-term chips held for more than ten years account for 17.7% of the total.
In essence, this change is due to the natural growth of existing coin age, with chips flowing from the 3–6 month cycle to the 6–12 month cycle, rather than a new round of large-scale accumulation. At present, 81.6% of the Bitcoin supply across the whole market has not been transferred for more than half a year, and 62.3% of Bitcoin has been idle for more than one year.
BTC0.66%
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