Long-term Bitcoin investors are holding onto their coins tightly, with a significant portion of the circulating supply firmly in their hands. This trend of accumulation is unprecedented, according to Glassnode. The illiquid supply of Bitcoin is also at an all-time high, indicating a commitment to hold through market volatility. Short-term holder supply is at record lows, suggesting a change in spending habits after Bitcoin's surge above $30,000. Bitcoin's price has continued to rise, gaining 2.9% over the past week and currently trading at $35,216.
Our analysis of the situation
Amidst the unpredictable twists and turns of the market and the lingering fog of economic uncertainty, Bitcoin holders are proving that a firm hold on their digital gold is the way to go. Recent data from blockchain analysis firm Glassnode has shed light on a remarkable trend: a significant chunk of Bitcoin's circulating supply is currently locked in the hands of long-term investors, reaching unprecedented levels.
Sure, the idea of Bitcoin being tightly held isn't exactly breaking news, but the level of accumulation we're witnessing now is truly remarkable. According to Glassnode's research, the community of long-term Bitcoin holders is not only expanding but doing so at an impressive rate of accumulation. We've got ourselves a committed bunch here, folks!
Now, let's delve into the fascinating realm of Bitcoin's illiquid supply. Glassnode's enlightening briefing gives us a bird's-eye view of the current state of the Bitcoin market. The data reveals that a whopping 68% of Bitcoin's circulating supply has been held for over a year, indicating a brave decision by investors to weather the storms of volatility and market dips. HODLing like it's nobody's business!
But wait, there's more! Brace yourselves for the mind-blowing fact that almost a third of all Bitcoin in circulation has been held for over five years. That's right, these folks have been HODLing since before some of us even knew Bitcoin existed. As for Bitcoin's illiquid supply, the numbers are soaring to new heights, with over 15.4 million BTC securely held in wallets that have barely been touched.
And the plot thickens... This illiquidity is no stagnant phenomenon; it's growing at a staggering pace of 71,000 Bitcoin per month, according to Glassnode's expert analysis. Talk about commitment!
Now, here's an intriguing twist: Glassnode's analysts suggest that this accumulation frenzy aligns with the observable pattern of investors withdrawing their Bitcoin from exchanges and locking them away in private custody. Yes, they are taking extra precautions to solidify their long-term holding strategy. In fact, since May 2021 alone, over 1.7 million Bitcoin have bid farewell to exchanges and found cozy homes in private custody.
But that's not all. Glassnode's report has another eye-opening revelation in store for us. Brace yourselves for a significant divergence between the behaviors of long-term and short-term Bitcoin holders. While the long-term supply is skyrocketing to historic highs, the supply held by short-term holders is plummeting to record lows. It seems that the surge in Bitcoin's value beyond the crucial $30,000 mark has prompted a change in spending habits. The battle for bullish sentiment at this point is the talk of the town, signaling a potential turning point in the market's trajectory.
Meanwhile, in the world of Bitcoin's latest price action, the digital currency continues its bullish run, recording a gain of 2.9% over the past week. As of now, it happily rests at $35,216, having climbed 1.5% in the last 24 hours.
Let's toast to the steadfastness of Bitcoin's long-term holders, the ever-increasing illiquid supply, and the intriguing game of divergence being played in the market. It's a world of Bitcoin like we've never seen before!
[Featured image from iStock, chart from TradingView]
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash or other free sources. They are illustrative and may not represent the content truly.
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