Bitcoin Long-Term Holders Reach All-Time High
A recent post by Capriole Investments founder Charles Edwards discusses the trend of Bitcoin long-term holders (LTHs) and their impact on the cryptocurrency market. LTHs are investors who have held onto their coins for at least 155 days, demonstrating strong resolve and resistance to market fluctuations.
The behavior of LTHs can be tracked through the combined supply of Bitcoin that they hold in their wallets. On-chain data shows that the percentage of total circulating Bitcoin supply owned by LTHs has been increasing over the past year, reaching a new all-time high of 76.2%.
This increase in LTH supply does not necessarily mean that these holders are currently buying more Bitcoin. Instead, it indicates that accumulation occurred 155 days ago, and these coins have now matured to be part of the LTH cohort.
The dominance of LTHs in the market means that short-term holders (STHs), who make regular trades, control less than a quarter of the supply. This reduced liquidity may lead to increased competition among buyers for available coins.
Implications for BTC Price
With a significant portion of the Bitcoin supply locked in diamond hand holdings, it remains to be seen how this dominance will affect the cryptocurrency’s price in the long term.
Currently, Bitcoin’s rally has stalled around $28,400, as it struggles to gain momentum above this level.
Hot Take: The Rise of Diamond Hands
The increasing number of Bitcoin long-term holders reflects a shift towards HODLing and resilience among investors. This trend suggests a growing confidence in the long-term potential of Bitcoin and a willingness to weather short-term market volatility. With LTHs holding a substantial portion of the supply, Bitcoin’s price trajectory may be influenced by their actions and decisions. As the cryptocurrency market continues to evolve, the role of diamond hands in shaping its future cannot be ignored.
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