On-chain data shows that long-term holders of bitcoin now own 76.2% of the total supply, a new all-time high for the cryptocurrency.
76.2% of bitcoin supply is now locked in the hands of diamonds
in a new mail At X, Capriole Investments founder Charles Edwards discussed the trend in the supply of long-term btc holders. “Long-term holders” (LTH) refer to investors who have held their coins for at least 155 days.
In general, the longer a holder keeps their coins idle, the less likely they are to move them at any time. For this reason, the LTH group includes investors with greater determination.
Historically, LTHs have remained quiet regardless of what is happening in the broader market as they are not easily attracted to profit-taking opportunities and ignore FUD situations. This resilience has earned this cohort the popular name “diamond hands.”
The easiest way to track the behavior of LTHs is through the combined supply they have in their wallets at the moment.
Now, here’s a chart showing the trend in the percentage of the total circulating bitcoin supply these HODLers currently own:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Diamond-Hands-Now-Holds-762-of-Supply-a-New.jpeg" alt="Long-Term bitcoin Holder Supply” width=”1800″ height=”1013″/>
Looks like the value of the metric has been going up in recent months | Source: @caprioleio on X
As shown in the chart above, the supply of long-term bitcoin holders has seen an upward trend over the past year, suggesting that HODLing has become more dominant among investors.
Something to keep in mind is that the increase in LTH supply does not mean that these HODLers are buying right now. Rather, what it reflects is that some accumulation occurred 155 days ago; the coins have only matured enough to be part of the current cohort.
After the last rise that the indicator has recorded recently, it has reached the 76.2% mark and, in the process, has surpassed the all-time high (ATH) recorded in 2015.
The current value implies that short-term holders (STH) of bitcoin, the hands that have weaker resolution and make regular transactions, control less than a quarter of the supply. “Less liquid supply means the same people are bidding for fewer coins,” Edwards notes. “You do the math.”
An interesting fact is that since the supply of the cryptocurrency always increases as miners produce new coins through mining blocks, the current supply is noticeably higher than in 2015, when the LTH supply reached its previous ATH.
Naturally, this means that the pure amount of capital that is locked in the holdings of these diamond hands is now also much higher, with a similar percentage of the supply held.
With unprecedented dominance of LTH in the market, it now remains to be seen how the price of the cryptocurrency will evolve in the long term.
btc Price
bitcoin‘s rally has stalled in recent days as the cryptocurrency has failed to gain any significant momentum above $28,400.
<img decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/DI2TS3lY/" alt="bitcoin price chart” width=”1534″ height=”869″/>
btc has been moving sideways recently | Source: BTCUSD on TradingView
Featured image from Shutterstock.com, Charts from TradingView.com, Glassnode.com
