More Bitcoin than ever has been held for at least a year, reportsย by Glassnode, a potentially positiveย tendency sign.
Investors are hanging onto their Bitcoinย (BTC) (BTC) longer than ever โ HODLing in industry parlance โ reportsย by data from Glassnode.
The proportion of Bitcoin thatโs been held for at least a year has climbed to a record 68%, Glassnode data shows, while 55 percent of Bitcoinย (BTC) has been held for at least two years and 40 percent for 3 years.
Numerous analysts consider it positiveย tendency when Bitcoin sits dormant on grounds that investors are choosing to hold on rather than sell. The prevalence of buy-and-hold in cryptocurrency contrasts with the longstanding shift in Unitedย States stocks, a market where investors now hold assets for significantly less time than they used to.
Sean Farrell, head of digital assets research at FundStrat, stated that being a longstanding holder has tended to get more trending over time. The exception is when markets get frothy and investors who purchased dips sell their older coins to eager buyers.
โThe tendency is positiveย tendency insofar it impliesย that higher prices are ahead in this cycle and any reticence to sell from current HODLers could result in a mini-supply squeeze,โ stated Farrell.
He alsoย mentionedย that looking at longstanding holder supply metrics is not necessarily useful for short-term price signals.
Long-Term-Holder Supply, which Glassnode deems as coins held for longer than 155 days, has likewise seen a new record-breakingย peak โ reaching 14.46 Million Bitcoinย (BTC). โThis reflects coins acquired instantly after the FTXย Tradingย Ltd failure maturing into longstanding holder status,โ stated the report.
Bitcoinย (BTC) long term/short term holder threshold (Glassnode)
Glassnodeโs Liveliness metric โ which compares the relative balance betwixt HODLing and spending behavior โ likewise shows investors are hanging on. It hasย dropped to the weakestย point since December 2020.
Nick Baker.
