Long-term savers added 16% to their holdings, thus putting more than 13 million BTC in their wallets this year. The number of coins in the hands of those investors reached almost 75% of all Bitcoin in circulation.
In 2021, the amount of Bitcoin (BTC) in the hands of long-term savers increased by almost 2 million coins. The latest report from Glassnode, which closes this year, reflects that figure.
Data from the analysis firm indicate that savers added 1 million 846 thousand BTC to their reserves. There was a 16% increase this year, during which more than 13.3 million coins have gone to the hands of long-term holders.
In contrast, the reserves of short-term holders decreased by more than 1.4 million coins. Due to that fall, those funds went to just over 3 million BTC, for a total drop of 32%.
That increase in long-term holding led those investors to reach almost 75% of all the Bitcoin in circulation. In other words, 3 out of 4 BTC not deposited on exchanges but in private wallets have remained in strong hands for the long term.
According to Glassnode, that behavior suggests that 2021 has been a year of macro consolidation and a period of modest accumulation. They noted that this is something that occurs more frequently during bearish markets. Curiously, that has been the case in the year when Bitcoin reached its new all-time high of nearly USD 70 thousand per unit.
There Is Less Bitcoin on Exchanges, and the Coins in Circulation Are in Profit
The decline was minimal, but the report from Glassnode shows that the amount of BTC on exchanges dropped. Compared to the beginning of 2021, when the net amount fell by almost 68 thousand coins, now there is 2.5% less BTC on exchange platforms.
The price of the pioneering cryptocurrency has been around 78% up since the beginning of the year. Besides, more than 70% of the coins in circulation are currently in profit, compared to the last time holders moved them. That represents a slight decrease from the one described in the previous report.
Glassnode considers that this was a wild ride for those involved in the world of Bitcoin. In addition to market issues, governments and regulators attacked mining, and developers implemented the long-awaited Taproot improvement.
As usual, Bitcoin closes the year being more robust and more resistant, ready to solve more blocks and create more opportunities in 2022. The pioneering cryptocurrency has always recovered from the worst crises and resumed its previous all-time highs.
Glassnode seems to agree with market analyst Willy Woo, recognized for his bullish bias towards the first cryptocurrency on the market. His most modest prediction reflected the same preference, foreseeing an excellent first quarter of 2022 for Bitcoin.
Bitcoin is currently trading at around USD 48.04 and has accumulated a 3.2% loss in the last 24 hours. Its daily trading volume is above USD 27.67 billion, and its market capitalization is about USD 908.77 billion, according to CoinGecko.
By Alexander Salazar
