On-chain data shows the Bitcoin long-term holder supply has set a new all-time high (ATH) despite the rally offering a profitable exit point.
Bitcoin Long-Term Holders Haven’t Given In To The Allure Of Profit-Taking Yet
In its latest weekly report, the on-chain analytics firm Glassnode has discussed how the BTC long-term holders have reacted to the latest rally in the asset towards the $35,000 level.
The “long-term holders” (LTHs) refer to those investors who have held onto their coins since at least 155 days ago. Statistically, the longer a holder keeps their coins still, the less likely they become to move them at any point.
Thus, since the LTHs have been holding their coins for a significant amount, they generally tend to remain quiet in the future. Throughout history, this cohort has shown this conviction regardless of whatever is going on in the market, whether FUD from crashes or FOMO from rallies.
Because of this, the times that the LTHs participate in selling can be ones to watch for, as they show that the market has pushed even these diamond hands towards selling.
Now, here is a chart that shows the trend in the supply held by the Bitcoin LTHs throughout the history of the cryptocurrency:
The value of the metric seems to have going up in recent months | Source: Glassnode's The Week Onchain - Week 43, 2023
As displayed in the above graph, the Bitcoin LTH supply has increased recently and has set a new ATH of about 14.9 million BTC. This suggests that a net amount of the supply has continued to mature past the 155-day threshold despite the sharp rally that the asset has enjoyed.
From the chart, it’s visible that at some point during major historical rallies, these LTHs have usually participated in at least a bit of net selling as some members of the cohort look to harvest their gains. Interestingly, that hasn’t happened with this rally so far.
In the chart, Glassnode has also attached the data for another metric: the amount of the LTH supply being held at some loss. It would appear that 29.6% of the supply owned by these HODLers (about 4.28 million BTC) is currently carrying a net unrealized loss.
The on-chain analytics firm notes that this is quite a high value considering the significant uptrend that Bitcoin has seen since the lows in 2022. Such indicator values have rather been seen during the deep bear market phases historically (except the March 2020 spike, which occurred because of the sudden COVID crash).
“This suggests that the LTH cohort may be a more hardened and firm-handed cohort compared to prior cycles,” explains the report.
Bitcoin has seen a sharp 13% jump in the past 24 hours as the cryptocurrency is now trading at $34,500.
Looks like BTC has seen some rapid growth recently | Source: BTCUSD on TradingView