Bitcoin HODLers, or long-term investors, have been increasing their holdings of BTC at a rate of 194,500 BTC per month, according to on-chain data. The illiquid supply of Bitcoin, which refers to the amount of BTC held by entities that rarely spend their coins, has been growing at rates near the cycle high. This supply includes the holdings of HODLers, who are known for their high conviction in Bitcoin. The long-term holder (LTH) supply metric, which tracks investors who have held their coins for more than 155 days, can lag behind as it only includes coins that have aged at least 155 days. However, the illiquid supply provides a more accurate picture of the HODLers’ behavior.
Key points:
– The illiquid supply of Bitcoin has been increasing, indicating that HODLers have been expanding their holdings.
– The illiquid supply change metric, which measures the 30-day changes in the illiquid supply, has surged to highly positive values recently.
– HODLers had briefly distributed their holdings in February-March, coinciding with a decline in the Bitcoin price.
– HODLers have been ramping up their purchasing recently, with the illiquid supply change nearing cyclical highs.
– HODLers are currently buying at a rate of 194,500 BTC per month, which is a positive sign for the Bitcoin market.
Hot Take:
The continued accumulation of BTC by HODLers is a positive sign for the Bitcoin market and suggests confidence in the long-term value of the cryptocurrency. This trend could contribute to the overall stability and growth of Bitcoin.
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