As a seasoned researcher with years of experience in the cryptocurrency market, I find it fascinating to observe the dynamics of Bitcoin long-term holders (LTHs). The recent surge in LTH supply is indeed a significant development that warrants close attention.
Over the last month, the amount of Bitcoin held by long-term investors has experienced a notable surge in terms of supply.
Bitcoin Long-Term Holder Supply Is Rapidly Growing Right Now
According to CryptoQuant community manager Maartunn in a recent post on X, it’s been observed that a significant portion of Bitcoin supply has moved into the hands of long-term investors (LTHs) – those who have held onto their Bitcoins for over 155 days.
In the world of Bitcoin trading, Long-Term Holders (LTHs) and Short-Term Holders (STHs) are the two primary categories. LTHs are characterized by their holding duration, contrasting with STHs who are more active traders. Typically, STHs symbolize market volatility, while LTHs embody steadfastness in their investment decisions.
One simple way to rephrase the given text could be: We can follow the actions of these two groups in several ways, and one method is by looking at the LTH Net Position Change. This figure shows the overall adjustment in the amount held by long-term holders (LTH). If this value is greater than zero, it signifies that more coins are being accumulated by the long-term holders. Conversely, when it’s less than zero, it indicates that a larger number of coins are being moved out of their possession.
Here’s a graph illustrating the evolution over time of the 30-day Long-Term Holder (LTH) Net Position Change for Bitcoin.
According to the graph, the 30-day Bitcoin Long-Term Holder Net Position Change dropped significantly as the Bitcoin price reached a record high in the initial part of the year. This indicates that these investors, who typically hold onto their assets, found it hard to resist the temptation to cash in on the profits generated by the rally. The profit-taking persisted even after the coin had peaked.
Over the past month, the supply of Long-Term Holders (LTHs) has experienced a substantial increase by approximately 959,000 BTC, marking a notable growth. It’s essential to note that this rise doesn’t suggest LTHs have made new purchases; rather, it means that coins bought around 155 days ago are now classified as long-term holdings due to being held for the required duration.
Unlike HODLing, which has a 155-day delay, selling does not carry this same time constraint. Instead, when coins are sold and become active through a network transaction, they immediately leave the Long-Term Holder (LTH) supply and can be seen as reflected instantly on the indicator.
The diamond hands may or may not have participated in Bitcoin ‘buying’ recently, but the fact that coins are maturing on the network is still a positive sign in any case, as it suggests the investors are willing to HODL right now.
BTC Price
Bitcoin has declined by another 3% over the last 24 hours, now coming down to the $60,800 mark.
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2024-10-03 13:41