Bitcoin HODLers Have Gone Back to Net Accumulation

On-chain data shows that long-term Bitcoin holders have reversed their trend recently, as their supply has absorbed $8 billion worth of tokens.

CryptoQuant data on Friday (24/02/2023) showed that long-term Bitcoin ( BTC ) holders have absorbed $8 billion in tokens over the past five months.

The long-term holders, defined as those who have held their BTC for at least 155 days, saw their supply increase as the price rose from around $54,000 to the current levels.

This دسته بندی of holders is split into two based on holding time — long-term holders (LTH) and short-term holders (STH). Statistically, the longer an investor holds onto their coins, the less likely they become to sell.

So, the LTHs, who tend to hold for longer periods, are known as the “HODLers” of the market. Generally, this group doesn’t easily sell, even during rallies or crashes, unlike the STHs.

However, this year’s rally proved to be too good a profit-taking opportunity for even the diamond hands to miss out on.

As you can see in the chart below, the Bitcoin LTHs sharply reduced their combined supply during the rally to the new price all-time high (ATH).

Bitcoin HODLers began selling heavily as the price dropped, but they participated in one final batch of sharp selling when BTC saw a rebound to $68,000.

The LTH supply dropped to 14,431,517 BTC following this selling, but since then, these holders have reversed their behavior.

The chart shows that the metric has risen to 14,557,609 BTC now, which indicates an increase of 126,092 BTC, or around $8.1 billion at the current exchange rate.

Something to note here is that whenever the LTH supply registers a rise, it doesn’t necessarily mean that these diamond hands are buying in the present.

Instead, the increase suggests that some buying took place five months ago, and those coins matured enough to be a part of this group. The same principle doesn’t apply to selling, of course.

This is because coins have their age reset back to zero as soon as they are moved on the Bitcoin blockchain, so they are instantly removed from the LTH supply.

However, the recent renewal of the uptrend in the indicator could be a sign that the diamond hands have finished selling and are now getting back to HODLing.

If this does turn out to be the case, then the trend could naturally be a bullish sign for the leading cryptocurrency.

BTC Price

The past day has seen bearish activity for Bitcoin, with its price dropping by more than 3%.

The world’s leading digital asset is now trading at an average price of around $64,600, as it continues to struggle to remain above the crucial $65,000 support level.

The chart below shows what BTC’s recent price performance has looked like: