Glassnode research notes that the community of long-term Bitcoin holders is not only growing but doing so at an “impressive rate of accumulation.”
Amid fluctuating markets and economic uncertainty, long-term Bitcoin investors are holding onto their coins more firmly than ever. Data from blockchain analytics firm Glassnode reveals a notable trend: a significant portion of Bitcoin’s circulating supply is firmly in the hands of long-term holders, with numbers reaching record levels.
Notably, the trend of Bitcoin holding strong is not a new phenomenon, but the level of accumulation today seems unprecedented. The commitment of this cohort is evidenced by all-time highs in key supply metrics (illiquid supply, coins held (HODLed), and long-term holder supply) that are at an all-time high, according to shared Glassnode insights.
A Dip into the Illiquid Bitcoin Supply
The Glassnode report outlined the current state of the Bitcoin market. The data illustrates that 68% of the circulating supply of Bitcoin has not moved for over a year, indicating a decision by investors to hold on despite volatility and market declines.
The metric of coins held for more than five years is even more telling, making up nearly a third of all Bitcoin in circulation. In terms of illiquid Bitcoin supply (coins held in wallets with little to no spending history), the numbers are also at an all-time high, with over 15.4 million BTC firmly held. This illiquidity is not a static condition, as it grows monthly to 71,000 Bitcoin, according to Glassnode analysis.
According to a Glassnode analyst, this accumulation has coincided with a notable pattern of investors withdrawing their Bitcoin from exchanges into private custody, further solidifying the long-term holding trend. The analyst revealed that “Data suggests that investors continue withdrawing their coins under custody, and over 1.7 million bitcoins have done so since May 2021.”
Bitcoin: Divergence in Holders and Latest Price Action
Glassnode’s report also highlights a significant divergence between the behaviors of long- and short-term Bitcoin holders. While long-term supply is reaching all-time highs, short-term holders’ supply is at all-time lows, indicating a change in spending habits following the currency’s rise above the fundamental benchmark of 30,000 Dollars.
Glassnode analysis suggests that this price is a crucial battleground for bullish sentiment, marking a potential turning point in the market’s trajectory. Meanwhile, over the past week, Bitcoin continued its bullish trend, recording a 2.9% gain. The asset is currently trading at $35,216 at the time of writing, up 1.5% in the last 24 hours.
Two Possible Directions for Bitcoin Price
Given the continued price rejection of the $35,000 zone, there may be a price correction to $31,000 as it seems unlikely to re-enter the long consolidation below $30,000. On the other hand, when considering various fundamental and market sentiment factors, such as renewed hopes for Bitcoin, anticipation of spot ETF approval, which could potentially take the price of BTC to unprecedented highs, and the long-awaited bull run in 2024, among others.
For these reasons, the price might rise steadily. Technical analysis also suggests that if Bitcoin successfully breaks above the $35,000 zone, a continued move towards $47,000 could be expected, with minor resistance levels around $39,000 and $44,000.
Crypto Rover, a popular expert on Bitcoin with over 500,000 followers on X, believes crypto ETF approval and BlackRock involvement will push Bitcoin to $100,000. Many analysts believe that the participation of institutional giants in the ETF lobby will inject billions of dollars into Bitcoin, thus driving up the price.
By Leonardo Perez
