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The chain data shows that long-term bitcoin holders now hold 78 per cent of the total supply in circulation, the highest value the measure has ever seen.
Bitcoin Long-Term Holders are sitting on 78 per cent of the total offer.
As pointed out by an analyst on Twitter, the divergence between the long-term holders and the short-term holders is at its greatest right now. The long-term holders (LTHs) and the short-term holders (STHs) are the two main holder groups that the entire Bitcoin market can be divided into.
Sths includes all investors who have purchased their parts in the past six months, while lths includes those who have acquired their btc before this threshold.
Statistically, the longer investors keep their coin, the less likely they are to sell at a particular point in time. Thus, lths usually have a tendency to keep their dormant parts for longer periods than sths. Due to this, LTHs are also often called the "diamond hands" of the Bitcoin marketplace.
Now, the relevant indicator here is the “percent young vs old supply,” which measures what percentage of the total circulating BTC supply is currently being held by the STHs (the “young” supply) and what’s being held by the LTHs (the “old” supply).
Here is a chart that shows the trend in this Bitcoin metric across the entire cryptocurrency story:
The two supplies seem to have diverged away from each other in recent months | Source: Glassnode on Twitter
As can be seen from the chart above, the percentage of the total supply of Bitcoin held by LTHs has only continued to increase over the last few years now, suggesting that there has been an increasing evolution towards a HODLing mindset among market investors.
While this has occurred, the percentage brought by the STH offer has naturally decreased, as its value is simply calculated by subtracting the LTH offer per cent from 100.
One recent brief decline was observed following the collapse of the crypto exchange FTX, which suggests the crash was able to shake even the strongest hands in the market. However, it did not take long for the incumbents to concentrate again and for the offer to regain strength.
After the latter accumulation by the cohort, the percentage of the offer they hold is 78%. Sths constitute the other 22% of the offer.
From the graph, it is obvious that this discrepancy between the two Bitcoin supplies is at the highest level ever at present. This means that the pressure on the sale of the majority of the supply should be the lowest ever, as it is likely to remain inactive for long periods over time.
Such a shock of supply in the marketplace may be bullish for the price of Bitcoin in the long run.
As of now, Bitcoin is trading around $23,500, up 2% in the last week.
Looks like BTC has continued to consolidate in the last few days | Source: BTCUSD on TradingView
