Bitcoin Long-Term Holders Show Strong HODLing Behavior
New data reveals that Bitcoin long-term holders (LTHs) have not been selling their coins during the recent market downturn. In fact, their supply is still near an all-time high (ATH). LTHs are defined as investors who have held their Bitcoin for at least 155 days.
LTHs are known for their resolute behavior and are less likely to sell their coins compared to short-term holders (STHs). The longer an investor holds onto their coins, the less likely they are to sell.
Tracking the Supply of Bitcoin Long-Term Holders
One way to monitor the behavior of LTHs is by looking at the combined amount of Bitcoin they hold in their wallets. According to Glassnode’s weekly report, there are different segments within the LTH cohort based on holding time. The report focuses on investors who have held their coins for 1+ years.
The report includes a chart that displays the supply for these LTH groups over the past few years. It shows a decrease in supply for most LTH bands, except for those holding for 3+ years. This suggests that some selling has occurred during the recent struggle in the Bitcoin market.
Selling Pressure and Grayscale Bitcoin Trust
Glassnode notes that some of the selling pressure can be attributed to outflows from the Grayscale Bitcoin Trust (GBTC), which has been a topic of discussion among BTC traders. However, despite this selling, the majority of Bitcoin holders remain steadfast, with the percentage of held supply near ATHs.
Bitcoin Price Update
As of now, Bitcoin is trading around $42,900, showing a 7% increase over the past week.
Hot Take: Bitcoin Long-Term Holders Stay Strong Despite Market Challenges
The latest data from Glassnode reveals that Bitcoin long-term holders have demonstrated their strong HODLing behavior during the recent market downturn. These investors, who have held their coins for an extended period, have shown resilience and are less likely to sell compared to short-term holders. While some selling has occurred, the majority of Bitcoin holders remain committed to their investments, with the supply held by long-term holders near all-time highs. This suggests that despite the challenges faced by the asset, long-term holders have confidence in its future potential. As Bitcoin continues to trade at around $42,900, it remains a focal point in the cryptocurrency market.
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