Bitcoin Diamond hands tight despite rally, supply at ATH
Data shows that Bitcoin supply older than 1 year has hit an all-time high, showing that the asset’s diamond hands remain strong throughout the rally.
Long-term Bitcoin holders are not bullish despite the rally
According to the latest weekly report from Glassnode, the supply older than 6 months is also close to an ATH right now. There are two Bitcoin metrics of relevance here, “supply older than 6 months” and “supply older than 1 year.”
As their names already suggest, these indicators include coins that have been dormant (that is, they have not been moved or sold from a single wallet address) since more than their respective timeouts.
Generally, any investor who has held onto their coins since more than 6 months ago is included in the group of “long-term holders” (LTHs). This means that both the deliveries of interest here (6 months+ and 1 year+) will include these holders.
Statistically, the longer a token remains dormant on the blockchain, the less likely it is to be sold at any time. Since the LTHs hold their coins for such long periods, they do not sell easily and are therefore referred to as the market’s resolute “diamond hands”.
Now, here’s a chart showing the trend in the amount of Bitcoin supply held by these LTHs, for two different starting cutoffs:
Looks like the values of the metrics have been climbing in recent days | Source: Glassnode's The Week Onchain - Week 8, 2023
As shown in the graph above, Bitcoin supply older than 6 months had seen some decline around the FTX collapse, showing that some of these LTHs had been put under enough pressure to capitulate during the crash.
However, the supply older than 1 year did not notice any significant decline during the price drop, suggesting that it was mostly holders of coins aged 6-12 months who ended up dumping in the crash. This trend can be seen as an illustration of how the older coins are generally harder to shake.
Since the crash, both of these supplies have observed an uptrend, with the 1 year+ hitting a new ATH of 12.9 million BTC, while the 6 month+ is almost at one as its current value is about 14.9 million BTC (last ATH was north of 15 million BTC).
Interestingly, these supplies have only either moved sideways or up since the last rise in the price of the asset began. This suggests that even the 50% year-to-date (YTD) gains have not been able to push these LTHs to engage in any profit-taking, showing that these investors potentially have a strong bullish belief about the cryptocurrency right now now and can expect even greater returns in the future.
BTC price
At the time of writing, Bitcoin is trading around $24,600, up 13% in the last week.
BTC seems to have been moving sideways in the last few days | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, Charts from TradingView.com, Glassnode.com
