On-chain data shows that long-term bitcoin holders have noticeably increased their supply this year. Here are the exact numbers.
Long-term bitcoin holders have grown throughout 2023
In its latest weekly report, the on-chain analysis firm glass node has discussed how the supplies of long-term and short-term holders of bitcoin have changed during the year 2023.
These two groups of investors make up the two main divisions of the btc sector. Short-term holders (STH) are participants who have purchased in the last 155 days, while long-term holders (LTH) are those who have held longer.
Statistically, the longer an investor holds their coins, the less likely they are to sell them at any time. As such, STHs are generally considered the weak hands of the market, while LTHs are the strong hands.
One way to track the behavior of these cohorts is through the amount of supply they currently have. The graph below shows the trend in the two groups' metrics over the past few years (note that only the supply held by these cohorts outside of exchanges is considered here).
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/This-is-how-much-Bitcoin-Diamond-hands-accumulated-in-2023.png" alt="Long and Short Term bitcoin Holder Supply” width=”2000″ height=”1152″ data-recalc-dims=”1″/>
The two metrics appear to have trended in opposite directions during the past year | Source: Glassnode's The Week Onchain - Week 51, 2023
As shown in the chart above, bitcoin's LTH supply has seen a considerable increase during 2023. STH supply has shown the opposite trend as it has recorded a large drop during this period.
In total, LTH supply has increased by 825,000 btc since January 1, bringing the value of the metric to approximately 14.9 million btc. STH supply, on the other hand, has dropped to just 2.3 million btc, having seen a drop of 506,000 btc.
Interestingly, these trends have continued even though bitcoin has seen nearly 160% price growth since the beginning of the year. It would seem that LTH have once again acted like the diamond hands that they are, avoiding the lure of profit-taking throughout the year.
Some of the STHs have been selling their coins for profits, which the LTHs have been buying. Others who are not selling have been maturing towards the LTH group, thus causing a similar change anyway.
Something to keep in mind about the LTH supply is that its increase is not a sign that it is being bought in the present, but rather that it occurred 155 days ago; the coins have just aged in the cohort. The sale, on the other hand, is recorded immediately.
From the chart, you can see that bitcoin's LTH supply has trended slightly lower since the last bullish push in the cryptocurrency occurred, suggesting that even some of these determined investors have collapsed under FOMO. of the profit-taking opportunity that this career is providing.
btc Price
bitcoin has been struggling to maintain momentum recently as it has been up and down a bit. Currently, the asset is trading around the $43,000 level.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/oQhdnXzN/" alt="bitcoin price chart” width=”1534″ height=”870″/>
Looks like btc hasn't moved much in recent days | Source: BTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, TradingView.com charts, Glassnode.com
