- Most holders were, on average, in a state of profit, but strongly resisted the urge to sell.
- Supply from long-term holders increased from 75% to 78.62% since the low volatility phase began.
The intense pressure placed on major crypto entities by US regulators has led to significant FUD among market participants. Coupled with the long period of low volatility in May, there has been little reason to applaud these players recently.
Read Bitcoin [BTC] Price Forecast 2023-24
But despite the odds, long-term holders (LTH) continue to show confidence in the market potential, especially in King Coin Bitcoin [BTC].
According to on-chain analytics company Glasnodethe percentage of supply held for more than a year climbed to an all-time high (ATH) of 68%, revealing investors’ lack of willingness to sell.
Source: Glassnode
Resilience in the picture
Long term holders are those participants who hold coins for more than 155 days. This cohort, colloquially referred to as “diamond hands”, is believed to have a risk tolerance and fail to sell despite long-term losses.
As indicated in the chart above, the dormant supply of BTC has increased significantly in most age categories since the start of 2023. However, the most notable trend has been the growing supply in the 2+ year category.
This cohort of investors brought the coins with them during the Great Miner Migration of 2021, when mining operations moved out of China following the government crackdown and BTC crashed. Since prices have yet to recover, these players are holding onto the coins, waiting for a bullish rise.
However, Bitcoin’s net unrealized profit/loss indicator at the time of publication read 0.23. This indicated that most holders averaged profits but strongly resisted the urge to sell.
Source: Glassnode
Long term delivery versus short term delivery
Another fascinating trend related to Bitcoin HODLing is the comparison between long-term holders and short-term holders, the participants who hold coins for less than 155 days.
Since the low-volatility phase began, LTH supply has risen from 75% to 78.62% at the time of writing. The STH, or “weak hands,” on the other hand, have sold significant amounts of BTC from their portfolios.
Source: Glassnode
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At the time of publication, BTC was exchanging hands for $26,065.66, according to CoinMarketCap. Market forces looked to the June 14 meeting of the US Federal Reserve as the trigger for vertical price action.
At the time of writing, the market mood was poised between greed and fear.
Bitcoin Fear and Greed Index is 45 ~ Neutral
Current price: $25,899 pic.twitter.com/zuYJ4pjcEy— Bitcoin Fear and Greed Index (@BitcoinFear) June 13, 2023