- BTC’s long-term holders control 80% of the coin’s circulating supply.
- The supply of the short-term holders of the currency continues to decline.
The percentage of total Bitcoin [BTC] its long-term investors’ supply has reached an all-time high of 80.34%, pseudonymous CryptoQuant analyst Onchained found in a new report.
Read Bitcoin’s [BTC] Price forecast 2023-24
Long-term BTC holders are investors who have held their coins for an extended period of time, typically longer than 12 months.
According to the analyst, the growth in BTC supply in the hands of long-term holders, as observed in the past, “indicates growing confidence among sophisticated investors, who are increasingly committed to their Bitcoin holdings.”
Source: CryptoQuant
This has happened despite the recent headwinds faced by the leading currency. At the time of writing, BTC was trading at $26,789. BTC’s price, which has been in a tight range since April, recently reached a new resistance at $28,500, which it has struggled to break above in recent months.
While long-term holders remain resilient in their decision to hold BTC despite the current price consolidation, short-term holders have adopted a different strategy.
This cohort consists of BTC investors who have owned their coins for less than 6 months. Found onchained:
“In stark contrast, short-term holdings supply has bottomed out, accounting for just 19.34% of circulating supply. This decline reflects a reduction in short-term speculation and a shift towards longer-term investment strategies.”
Source: CryptoQuant
Commenting on the implication of a greater percentage of BTC’s supply being controlled by those who plan to hold for a long time, the analyst noted:
“With the majority of circulating supply in the hands of long-term investors, this points to a more mature and confident market environment. Experienced, patient investors are accumulating Bitcoin, underscoring belief in its long-term potential.”
How much is 1, 10 or 100 BTC worth today?
Both cohorts remain underwater
A review of the Spent Output Profit Ratio (SOPR) for both BTC’s long-term and short-term investors left them at a loss at the time of writing. This metric measures the profitability of BTC transactions.
Normally, a SOPR value above 1 indicates that investors are selling their coins for a profit. Conversely, when an asset’s SOPR is less than 1, it indicates that investors are distributing their holdings at a loss. Data from CryptoQuant Sets the SOPR value for long-term and short-term holders of BTC at 0.93 and 0.99 respectively at the time of writing.