Data shows the supply of 1-year-old Bitcoin has reached an all-time high, indicating that the asset’s diamond hands are holding strong through the rally.
Long-Term Bitcoin Holders Not Rising Despite Rally
According to Glassnode’s latest weekly report, supplies older than 6 months are also close to their current ATH. There are two relevant Bitcoin metrics here, “supplier over 6 months” and “supplier over 1 year.”
As the name suggests, the indicator includes coins that have been inactive (that is, have not been moved or sold from a single wallet address) since more than a certain period of time.
In general, any investor who has held coins for more than 6 months is included in the group of “long-term holders” (LTHs). This means that both the interest supplies here (6 months + and 1 year +) will belong to the holders.
Statistically, the longer a token remains inactive on the blockchain, the less it can sell at any point. Because LTH holds coins for a large period of time, they are not easy to sell and are referred to as “diamond hands” in the market.
Now, here is a graph showing the trend of the amount of supply of Bitcoin held by this LTH, for two different initial chunks:
Looks like the values of the metrics have been climbing in recent days | Source: Glassnode's The Week Onchain - Week 8, 2023
As shown in the chart above, the supply of Bitcoin older than 6 months has seen a decline around the FTX collapse, indicating that some of these LTHs have been put under enough pressure to surrender during the crash.
Supply that is older than 1 year, however, did not notice a significant drawdown during the price plunge, suggesting that usually those who have coins aged between 6-12 months who ended up spending in the crash. This trend can be seen as an illustration of how old coins are more difficult to mint.
Since the crash, both supplies have seen an upward trend, with the 1 year + hitting a new ATH of 12.9 million BTC, while the 6 month + is almost one as the current value is about 14.9 million BTC (the last ATH was north of 15 million BTC).
Interestingly, the supply has only moved sideways or upwards since the latest rally in the asset’s price began. This shows that the 50% year-to-date (YTD) gains have not been able to push the LTH to participate in some profits, indicating that the investors have the potential to be confident about the cryptocurrency now and possibly. expect to return even more in the future.
BTC price
At the time of writing, Bitcoin is trading around $24,600, up 13% over the past week.
BTC seems to have been moving sideways in the last few days | Source: BTCUSD on TradingView
Featured images from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com