Bitcoin Diamond Hands Sit Tight Despite Rally, Supply At ATH

Bitcoin Diamond Hands Sit Tight Despite Rally, Supply At ATH

The data shows that Bitcoin’s 1+ year supply has reached an all-time high, showing that the asset’s diamond hands are holding strong during the rally.

Bitcoin Long Holders Not Moving Despite Rally

According to Glassnode’s latest weekly report, the 6+ month supply is also close to one ATH at the moment. There are two Bitcoin relevance metrics here, the “supply older than 6 months” and the “supply older than 1 year”.

As their names already suggest, these indicators include coins that have been dormant (i.e. not moved or sold from a single wallet address) since more than their respective time limits.

Generally, any investor who has held their coins for more than 6 months is included in the group of “long-term holders” (LTHs). This means that both supplies of interest here (6 months+ and 1 year+) would include these holders.

Statistically speaking, the longer a token remains dormant on the blockchain, the less likely it is to be sold at any given time. Because LTHs hold their coins for such long periods, they don’t sell easily and are called the resolute “diamond hands” of the market.

Now, here is a graph that shows the trend in the amount of Bitcoin supply held by these LTHs, for two different initial halvings:

Providing long-term Bitcoin support

Looks like the values of the metrics have been climbing in recent days | Source: Glassnode's The Week Onchain - Week 8, 2023

As displayed in the chart above, Bitcoin’s 6+ month supply saw some decline around the FTX crash, showing that some of these LTHs were pressured enough to capitulate during the crash.

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The more than 1 year supply, however, did not see any significant drawdown during the price drop, suggesting that it was mainly holders of coins aged between 6 to 12 months who ended up crashing. This trend can be seen as an illustration of how older coins are generally harder to move.

Since the crash, both supplies have seen an uptrend, with the 1 year+ reaching a new ATH of 12.9 million BTC, while the 6 month+ is almost at one as its current value is around 14.9 million of BTC (last ATH was north of 15 million BTC).

Interestingly, these supplies have only moved sideways or up since the beginning of the last rally in the asset’s price. This implies that even 50% year-to-date (YTD) profits have not been able to lead these LTHs to participate in some profit-taking, showing that these investors potentially have a strong bullish conviction about the cryptocurrency now and can expect even greater returns. in the future.

BTC price

At the time of writing, Bitcoin is trading around $24,600, up 13% over the last week.

Bitcoin Price Chart

BTC seems to have been moving sideways in the last few days | Source: BTCUSD on TradingView

Featured Image of Kanchanara from, Charts from,

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