More Bitcoin than ever has been held for at least a year, reports by Glassnode, a potentially positive tendency sign.
Investors are hanging onto their Bitcoin (BTC) (BTC) longer than ever – HODLing in industry parlance – reports by data from Glassnode.
The proportion of Bitcoin that’s been held for at least a year has climbed to a record 68%, Glassnode data shows, while 55 percent of Bitcoin (BTC) has been held for at least two years and 40 percent for 3 years.
Numerous analysts consider it positive 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 United 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.
“The tendency is positive tendency insofar it implies that higher prices are ahead in this cycle and any reticence to sell from current HODLers could result in a mini-supply squeeze,” stated Farrell.
He also mentioned 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-breaking peak — reaching 14.46 Million Bitcoin (BTC). “This reflects coins acquired instantly after the FTX Trading Ltd failure maturing into longstanding holder status,” stated the report.
Bitcoin (BTC) long term/short term holder threshold (Glassnode)
Glassnode’s Liveliness metric – which compares the relative balance betwixt HODLing and spending behavior – likewise shows investors are hanging on. It has dropped to the weakest point since December 2020.