Bitrabo Editorial
Recent on-chain data reveals that the supply of Bitcoin held by long-term holders has experienced a significant net increase over the past month.
Growth in Bitcoin Long-Term Holder Supply
According to a recent post by CryptoQuant’s community manager Maartunn on X, a notable amount of Bitcoin is transitioning into the hands of long-term holders (LTHs). These holders are identified as those who have maintained their BTC for over 155 days.
The Bitcoin market is generally divided into two key groups based on how long they hold their assets: long-term holders (LTHs) and short-term holders (STHs). While STHs are typically viewed as more speculative and prone to selling quickly, LTHs are considered steadfast investors.
To analyze the behavior of these two groups, one can use the LTH Net Position Change metric. This measures the net change in the amount of Bitcoin held by long-term holders. A positive value indicates an increase in LTH supply, whereas a value below zero signifies that more coins are leaving this group than entering.
Below is a chart showcasing the 30-day trend of Bitcoin’s LTH Net Position Change:
The chart indicates that the 30-day LTH Net Position Change dropped sharply into negative territory when Bitcoin’s price surged to new heights in the first quarter of this year. This suggests that even steadfast investors succumbed to the temptation to take profits during the market rally. This trend of profit-taking among long-term holders persisted even as prices peaked.
However, recent months show a positive shift in this metric, with a significant increase occurring in the last month alone. Over the past 30 days, LTH supply has grown by 959,000 BTC, which is a noteworthy figure. It is essential to clarify that this increase does not indicate that new coins have been purchased; rather, it reflects the maturation of older coins now qualifying as long-term holdings.
It’s important to note that while accumulation among long-term holders involves a 155-day maturation period, the opposite is true for selling. Any transaction that puts coins back into circulation is instantly reflected in the metrics, unlike the accumulation process.
While it’s uncertain whether long-term holders have made recent purchases, the maturation of coins within the network is a positive indicator, suggesting that investors are currently committed to holding their assets.
Current BTC Price
Bitcoin’s value has decreased by 3% in the last 24 hours, now trading around $60,800.