Bitcoin Supply Remains Dormant as HODLing Continues
An analysis of on-chain data reveals that approximately one-third of the total circulating supply of Bitcoin has not been moved on the blockchain for over five years. Long-term holders (LTHs), who have held their coins for at least 155 days, make up the more resolute group of investors. They rarely sell their Bitcoin, even during periods of significant losses or profits.
Trends Among Long-Term Holders
A chart shared by analyst James V. Straten shows the trend in the supply held by different bands of LTHs. The longer a holder keeps their coins dormant, the less likely they are to sell them. The supply held by LTHs who haven’t moved their Bitcoin in over a year has recently seen a sharp increase, with the 5+ years old band experiencing the most significant rise.
HODLing Behavior Grows Stronger
Despite recent bullish momentum in Bitcoin’s price, none of the LTH age bands have engaged in net selling. Instead, all groups have seen some degree of increase, indicating that HODLing behavior has only grown stronger. The 5+ years old band now holds nearly one-third of Bitcoin’s supply, suggesting that these long-term investors continue to hold onto their assets even after experiencing the ups and downs of previous market cycles.
Hot Take: BTC Price and Momentum
Bitcoin’s bullish momentum has slowed down in recent days, with the cryptocurrency currently trading around $43,600. Despite this temporary stall, the long-term holding behavior observed among Bitcoin investors indicates a strong conviction in the asset’s value.
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