As a seasoned researcher with years of experience delving into the fascinating world of cryptocurrencies, I find myself intrigued by the recent surge in long-term Bitcoin holders. It seems that the LTHs are once again demonstrating their unwavering commitment to HODLing, even in the face of market volatility.
According to blockchain information, long-term Bitcoin owners have been accumulating more, implying an uptick in the belief among them that they should hold onto Bitcoin for the long term.
Bitcoin Long-Term Holder Supply Is Going Up Again
According to Axel Adler Jr’s recent post on X, the number of Bitcoin investors who have held onto their coins for over 155 days is increasing once more. These “long-term holders” are individuals who have been keeping their Bitcoins since that period.
In the world of Bitcoin trading, Long-Term Holders (LTHs) make up one of the two primary categories. The other group is called “Short-Term Holders” or simply “Short-Timers” (STHs), as they are known for their shorter holding periods compared to LTHs.
Historically, Long-Term Holders (LTHs) have proven to be steady investors, unwilling to sell their assets even during significant market shifts such as rallies or crashes. In contrast, Short-Term Holders (STHs) tend to quickly respond to market fluctuations.
Below is a chart showing how the two groups’ supply dominance has changed over the last few years.
As an analyst, I’ve observed a notable decrease in the supply share held by Long-Term Holders (LTHs) of Bitcoin earlier this year, dropping as low as 78%. This significant reduction occurred just before the recent market crash that took place at the start of this month.
In recent times, the metric has experienced a significant surge, pushing its worth above 80%, which in turn, naturally reduced the proportion of STH supply to less than 20%.
Keep in mind that an expansion in Long-Term Holder (LTH) supply does not necessarily mean transactions are taking place. Instead, Short-Term Holders (STHs), who have held coins for at least 155 days, move up into the LTH category, causing the group’s inventory to grow.
In essence, the rise in Long-Term Holder (LTH) supply doesn’t imply that the market is hoarding. Instead, it indicates that investors who purchased a few months back are choosing to keep holding onto their Bitcoins. This could potentially be a positive indicator for Bitcoin’s price movement.
Unlike long-term holders (LTH) when they “buy”, which has a 155-day waiting period, there’s no such delay for selling. When LTHs transfer their coins on the blockchain, the age of these coins instantly resets to zero, and the tokens are now considered part of the short-term holder (STH) supply.
The graph indicates that, similar to earlier this year, the LTHs were involved in another selloff prior to the most recent one. This occurrence happened when the price peaked at its maximum historical value (ATH), suggesting that the rally was so strong that even these long-term holders found it hard to resist participating.
BTC Price
Bitcoin has retraced a part of its recent recovery as its price has dropped to $61,800.
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2024-08-28 10:11