Bitcoin Dormant Coins

Dormant Coins Explained

The Dormant Coins chart is similar to the Unspent Outputs chart except that, instead of showing how many UTXOs there are, we can look at the sum total of coins held in all the UTXOs. To understand better, think of wallets as buckets of marbles. Each marble represents a bitcoin. The Unspent Outputs chart tells us how many buckets there are. The Dormant Coins chart tells us how many total bitcoins are in all of those buckets.

How to Interpret Dormant Coins Chart

A bitcoin is considered dormant if it hasn’t moved for more than a year. As you can see, dormant coins increase year over year, implying a greater and greater number of hodlers who refuse to move their coins and thus sell them. You can also view the amount of bitcoins mined by miners who have not moved them. Those coins are represented by the purple line.

Reasons for Dormant Coins

A dormant set of coins could indicate that the keys to a wallet are lost so the owner cannot move them.. Another reason for dormant coins is that someone is saving them.