Emily Walker
Recent data indicates that the balance of Bitcoin HODLers has decreased by approximately 9.8% during the current bull market. Let’s explore previous cycles for comparison.
Recent Decline in Bitcoin HODLer Holdings
Data from the market intelligence platform IntoTheBlock reveals a gradual reduction in the total balance held by long-term Bitcoin investors.
Long-term holders (LTHs) are defined as those who have retained their Bitcoin for a minimum of one year without any transfers or sales.
Statistically, the more extended the period an investor holds onto their coins, the less likely they are to sell. Therefore, LTHs are viewed as steadfast market participants, contrasting with the more volatile “short-term holders” (STHs).
Below is a chart shared by IntoTheBlock illustrating the trend in combined holdings of Bitcoin LTHs over the last decade:
The graph indicates a considerable decrease in the supply of Bitcoin held by LTHs this year, with a noted 9.8% drop during this declining phase.
Notably, LTHs tend to become active whenever there is a decline in their total balance, often leading to some selling activity.
It’s essential to highlight that while selling activity is promptly reflected in these metrics, buying does not show immediate results. Coins can only qualify as LTH assets after being held for a full year, resulting in a one-year delay in their classification.
Even though LTHs are generally reluctant to sell, they may feel compelled to when substantial profits emerge during a major Bitcoin rally.
IntoTheBlock’s analysis has illustrated how these selling patterns appeared in previous cycles, showing that the current decline is notably less severe than those witnessed in past bull markets.
“Long-term holder balances have decreased by 9.8% this cycle, in comparison to 15% in 2021 and 26% in 2017,” notes IntoTheBlock. This could suggest that HODLer distribution may have further room for manipulation before the Bitcoin rally concludes.
In other updates, CryptoQuant community analyst Maartunn reported that the total Open Interest in the cryptocurrency market has surged to a record high of $79.2 billion, as mentioned in an X post.
Open Interest indicates the total number of derivatives positions established on centralized exchanges. An uptick in this metric usually signals increased volatility in the market.
Current BTC Price Trend
Bitcoin’s price has recently stabilized, hovering around the $95,800 mark, indicating a cooling period in the rally.