Bitcoin Long-Term Holders Increase Their Supply in 2023
The latest weekly report from on-chain analytics firm Glassnode reveals a significant change in the supplies of Bitcoin long-term holders and short-term holders throughout 2023. Short-term holders (STHs) are those who have bought Bitcoin within the last 155 days, while long-term holders (LTHs) are those who have held onto their coins for longer than that.
Historically, long-term holders are less likely to sell their coins compared to short-term holders. This makes STHs the weak hands in the market, while LTHs are considered resolute. One way to track the behavior of these two groups is by examining the amount of supply they currently hold off-exchanges.
Bitcoin Long-Term and Short-Term Holder Supply
The chart provided by Glassnode shows that the supply of Bitcoin held by LTHs has increased significantly in 2023, while the supply held by STHs has decreased. Since January 1st, the LTH supply has risen by 825,000 BTC to approximately 14.9 million BTC. In contrast, the STH supply has declined by 506,000 BTC to just 2.3 million BTC.
Despite Bitcoin’s price growth of almost 160% this year, LTHs have refrained from selling their coins, acting as diamond hands. Some STHs have sold their coins for profits, which were then bought up by LTHs. Additionally, some STHs have transitioned into the LTH group over time.
It’s important to note that the increase in LTH supply reflects coins that were bought 155 days ago and have now aged into this cohort. Conversely, selling is immediately registered. The chart also shows a slight decline in LTH supply since the recent upward push in Bitcoin’s price, indicating that even some resolute investors have succumbed to the temptation of profit-taking.
BTC Price
Bitcoin has been experiencing volatility recently, struggling to maintain consistent momentum. Currently, it is trading around $43,000.
Hot Take: Bitcoin Long-Term Holders Remain Steadfast Despite Market Volatility
The on-chain data from Glassnode reveals that Bitcoin long-term holders have continued to increase their supply throughout 2023, demonstrating their unwavering commitment to holding onto their coins. Despite the opportunity for profit-taking presented by Bitcoin’s significant price growth this year, long-term holders have resisted selling and have even bought up coins sold by short-term holders.
This behavior highlights the strong conviction and belief in the long-term potential of Bitcoin among these resolute investors. However, the recent decline in LTH supply suggests that even some of these steadfast holders have succumbed to the fear of missing out on profits.
Overall, this data showcases the dynamics between short-term and long-term holders in the Bitcoin market and provides insights into their behavior during periods of market volatility. It will be interesting to see how these trends evolve in the future as Bitcoin continues to gain traction as a mainstream investment asset.
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