On-chain data shows that long-term holders of bitcoin have continued their HODL strength recently, as their supply reached a new all-time high.
Long-term holders of Bitcoin now control 75% of the circulating supply
According to data from the on-chain analytics company glassLong-term BTC holders now hold 14.52 million BTC. “Long-Holders” (LTHs) here denote that investors have been holding their currencies for more than 155 days.
LTHs consist of one of the two main segments of the Bitcoin market, the other half being “Short Term Holders” (STHs), which naturally includes holders of the coin who have bought in less than 155 days.
Statistically, the longer an investor holds onto their coins, the less likely they are to be sold at any time. Thus, LTHs are generally more assertive investors than STHs.
One of the indicators that can be used to track these hands of diamonds is “LTH supply,” which measures the total amount of bitcoin that these investors are currently holding in their wallets. Here is a chart showing the trend in Bitcoin LTH supply over the past few years:
The value of the metric seems to have been slowly going up in recent days | Source: Glassnode on Twitter
As shown in the above chart, the long-term bearer supply of bitcoin has been in an overall bullish trend for a while now. The last time the index noticed a significant decline was during an uptrend in the first half of 2021.
As mentioned earlier, LTHs generally have static momentum, which means they don’t sell quickly regardless of what happens in the broader market, be it FUD or the attractiveness of profit taking.
The bull run in the first half of 2021 was a tempting enough exit opportunity that even these investors gave up and sold a large amount of their supply.
But since these investors have returned to accumulating, there have been no significant periods of downward trends in their bid. The graph shows that there were minor and temporary dips during significant events, such as the FTX crash in November 2022.
Even after starting to rally this year, Bitcoin LTHs have continued to stay tighter, with supply consistently hitting all-time highs. This may indicate that these owners do not believe current prices are close enough to take profit here.
After the recent upward move in this metric, these diamond hands are now holding a new all-time high of 14.52 million bitcoins, which equals about 75% of the total circulating supply of the cryptocurrency.
That these investors continue to accumulate is a positive sign for the asset, though any benefits from this HODLing will only appear in the long run.
BTC price
At the time of writing, Bitcoin was trading at around $29,000, down 3% in the past week.
BTC has seen a sharp drop in the past day | Source: BTCUSD on TradingView
Featured image by Viktor Forgacs on Unsplash.com, charts from TradingView.com, Glassnode.com