On-chain data shows that long-term Bitcoin holders’ supply has hit a new all-time high (ATH), despite the rally offering a profitable exit point.
Long-term Bitcoin holders have not yet succumbed to the lure of profit-taking
In its latest weekly report, the on-chain analytics company states Glass junction discussed how long-term holders of BTC have reacted to the asset’s latest rally towards the $35,000 level.
The ‘long-term holders’ (LTHs) refer to investors who have held their coins since at least 155 days ago. Statistically, the longer a holder holds their coins still, the less likely they are to move them at any time.
Therefore, because the LTHs own their coins for a significant amount, they generally tend to remain quiet going forward. Throughout history, this cohort has demonstrated this belief no matter what happens in the market, whether it be FUD from crashes or FOMO from rallies.
As a result, the moments when the LTHs participate in the sale can be a moment to look forward to, as they show that the market has pushed even these diamond hands to sell.
Here is a chart showing the trend in the supply of Bitcoin LTHs throughout the history of the cryptocurrency:
The value of the metric seems to have going up in recent months | Source: Glassnode's The Week Onchain - Week 43, 2023
As shown in the chart above, Bitcoin LTH supply has increased recently, reaching a new ATH of approximately 14.9 million BTC. This suggests that a net amount of supply has continued to breach the 155-day threshold despite the sharp rally the asset has experienced.
The chart shows that these LTHs have typically participated in at least some net selling at some point during major historical rallies as some members of the cohort looked to harvest their gains. Interestingly enough, that has not happened yet at this rally.
In the chart, Glassnode also included the data for another metric: the amount of LTH supply held at some loss. It appears that 29.6% of the supply owned by these HODLers (approximately 4.28 million BTC) is currently experiencing a net unrealized loss.
The on-chain analytics company notes that this is a fairly high value considering the significant upward trend Bitcoin has seen since the 2022 lows. Such indicator values have historically been seen previously during the deep bear market phases (except for the March 2020 peak, which occurred due to the sudden COVID crash).
“This suggests that the LTH cohort may be a more hardened and steadfast cohort compared to previous cycles,” the report explains.
BTC price
Bitcoin has seen a sharp jump of 13% in the past 24 hours as the cryptocurrency is now trading at $34,500.
Looks like BTC has seen some rapid growth recently | Source: BTCUSD on TradingView
Featured image by Aleksi Räisä on Unsplash.com, charts from TradingView.com, Glassnode.com
