The Percentage of Bitcoin Held by Long-Term Holders Hits All-Time High
The latest data from Glassnode reveals that the percentage of Bitcoin supply held by long-term holders is nearing an all-time high of approximately 76%. This increase in the number of coins owned by long-term holders could indicate a positive shift in sentiment. Unlike speculators who gamble on price fluctuations, long-term holders are individuals or organizations that have held their coins for at least 155 days.
Long-term holders, also known as “diamond hands,” tend to refrain from selling their coins, which can support crypto prices by reducing the number of coins in circulation. This news comes at a time when the broader crypto market is recovering after recent crashes.
More Entities Holding Bitcoin
Bitcoin is deflationary by nature, with only 21 million coins ever set to circulate. However, mining continuously adds coins until all 21 million are mined by 2140. Currently, there are 19.49 million coins in circulation, with a significant portion considered lost or irrecoverable. Entities like Satoshi Nakamoto, the US government, and public companies such as MicroStrategy also hold substantial amounts of Bitcoin.
MicroStrategy, a publicly traded company, currently holds the largest amount of Bitcoin among public entities. As of September 19, they had purchased 152,800 BTC, which accounts for roughly 15% of the total amount believed to be controlled by Satoshi Nakamoto.
Bitcoin Sees a 10% Increase as Bulls Remain Optimistic
Bitcoin has experienced a recovery and is up approximately 10% from its September lows around the $25,200 support level. Despite this uptrend and bullish momentum, technical analysis suggests that the path of least resistance remains bearish due to the influence of a bearish candlestick arrangement from August 17.
Bitcoin prices are currently confined within the June to July 2023 trade range. However, buyers have a chance as they bounce from key Fibonacci retracement levels. The medium-term buy target is $31,800 or the July 2023 high.
Hot Take: The Long-Term Holder Surge and Bitcoin’s Future
The increase in the percentage of Bitcoin held by long-term holders indicates a positive sentiment shift in the market. These “diamond hands” can support crypto prices by reducing the number of coins in circulation. As Bitcoin recovers and gains momentum, it remains to be seen how prices will react in the coming days or weeks. If prices continue to rise, more BTC holders may join in before taking profits. However, a pullback below the $25,000 primary support level could lead to a decline in investor sentiment.
Source: Twitter
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