Bitrabo Editorial
Recent data on the blockchain indicates that long-term Bitcoin holders have strengthened their position, indicating a growing commitment to HODLing their assets.
Increasing Long-Term Holder Supply of Bitcoin
An analysis by CryptoQuant’s Axel Adler Jr on X reveals that the supply of long-term holders is once again on the rise. Long-term holders (LTHs) are investors who have held onto their Bitcoin for more than 155 days.
LTHs form one of the primary segments of the Bitcoin market categorized by holding duration, with the other group being short-term holders (STHs).
Historically, LTHs have demonstrated resilience as HODLers, typically not selling even during significant market fluctuations such as rallies or crashes. In contrast, STHs tend to react swiftly to market events.
The chart below illustrates the shifting supply dominance between these two groups over recent years.
The data displays a decrease in the supply share of Bitcoin LTHs earlier this year, dropping to 78% during the crash in the month’s early stages.
However, the metric has recently seen a notable recovery, rising above 80%, while the STH supply share has fallen below 20%.
It’s essential to note that an increase in LTH supply does not necessarily indicate new purchases. Instead, members from the STH group transition to LTH status after holding for 155 days, contributing to the overall supply of LTHs.
Therefore, the recent upsurge in LTH supply does not imply active accumulation but rather signifies the inclination of investors who purchased a few months back to continue holding, potentially signaling a bullish trend for Bitcoin.
While there is a delay of 155 days attached to LTH “buying,” the same does not apply to selling. When LTHs transfer their holdings on the blockchain, the age of the coins resets to zero, moving them into the STH supply.
The chart reveals that LTHs also participated in a previous sell-off this year before the recent one, coinciding with the peak in price to an all-time high (ATH), suggesting that even these HODLers couldn’t resist the allure of the rally.
Current Bitcoin Price
Bitcoin has retraced some of its recent gains, with the price declining to $61,800.