Glassnode Data Shows BTC Investors Are HODLing, Stashing Coins Away From Exchanges

Data from Glassnode, an on-chain analytics and intelligence platform, reveals that BTC has more holders now than ever before.

On-chain data reveals that Bitcoin has more holders now than ever before. The asset’s illiquid supply has steadily increased for months, according to Glassnode. On the other hand, short-term holder supply and exchange balances have been declining.

Strong holding signals among Bitcoin enthusiasts have increased significantly, showing bullish sentiments around the asset’s future performance. Crypto Banter pointed out that Bitcoin’s stored supply has increased for months. According to the post, the surging Bitcoin stored supply gives ‘mega HODLing vibes,’ implying that a potential rally could be imminent.

Glassnode data reveals BTC investors are holding

Stored supply increasing for months = mega HODLing vibes pic.twitter.com/0Bl4WtP3Hy

— Crypto Banter (@crypto_banter) October 21, 2024

According to data from Glassnode, stored supply metrics show increasing trends, while active supply metrics show a declining trend. The stored supply metrics include Bitcoin HODLed or lost coins, long-term holder supply, and Bitcoin’s illiquid supply. In contrast, active supply metrics include short-term holder supply and exchange balances, as well as liquid and highly illiquid supply.

Bitcoin’s illiquid supply is at an all-time high. BTC’s long-term holder supply has also increased significantly since the year began. The short-term holder supply, on the other hand, has dropped.

Liquid and highly liquid supply has also been on a steady decline since the year 2024 began. Glassnode data also denotes that the number of BTC held or lost coins has dipped slightly from an all-time high recorded at the beginning of the year.

Meanwhile, data from CryptoQuant shows that Bitcoin reserves in all centralized exchanges, which represent the total number of coins each exchange holds, have dropped significantly. The decline has occurred since November 2023, and the reserves currently stand at 2.64 million, close to all-time lows at the time of this writing. Usually, a higher exchange reserve figure in all exchanges indicates that the market is experiencing higher selling pressure and the prices are likely to decline.

The declining reserves on centralized exchanges correspond to Glassnode’s data, which shows that Bitcoin’s stored supply has been on the rise. The data suggests that Bitcoin investors are opting to hold their assets and are now preferring self-custody over centralized exchanges.

Institutional BTC adoption has also grown significantly

Bitcoin has also seen increased institutional and large-scale investor interest. A report by River Financial in September showed that institutional Bitcoin adoption increased by 30% in a year, culminating in a 587% surge since 2020. The report also stated that institutions and businesses now hold over 3% of all Bitcoin in circulation.

The report stated that the institutions view Bitcoin as a strategic hedge against inflation and a way to diversify their treasury assets. U.S.-based companies have 49.3% of business bitcoin holdings, which equates to $19.7 billion.

On a related note, BTC-approved ETFs in the U.S. have seen rapid growth in recent months. The funds recorded a 6-day positive flow with an aggregate of $273.71 million on October 18th, according to data from CryptoQuant’s arm, SoSosValue. The ETFs have net assets collectively valued at $66.11 billion.