Bitcoin HODLers Unmoved By Recent Volatility: Glassnode
On-chain data from Glassnode shows that recent volatility has not been enough to make the ‘Bitcoin diamond hands’ give way.
Long-term Bitcoin Holders Continue to Increase Their Holdings
According to data from on-chain analytics firm glassnode, HODLing remained the main dynamic among long-term holders. The “long-term holder” (LTH) group is a Bitcoin cohort that includes all investors who have held their coins since at least 155 days ago.
An indicator called “Supply Last Active Age Bands” can break down the total amount of supply each “age group” in the market is currently holding. Coins are divided into these age groups based on the total amount of time they have been dormant on the blockchain.
With the help of this metric, it is possible not only to monitor the supply of LTHs in general, but also to study the behavior of the different segments of this group.
In the context of the current discussion, the relevant parts of LTHs are those that carry coins since at least one year ago. To be more specific, the age groups considered here are 1+ years, 2+ years, 3+ years, 4+ years and 5+ years.
Here is a graph that shows the trend in the supply of these LTHs over the entire history of the cryptocurrency:
The values of these metrics have only gone up in recent days | Source: Glassnode on Twitter
Please note that age groups here do not have upper limits. This means that younger age groups also include supplies from age groups older than them. For example, the 1+ years range includes the combined data of all these other ranges, as it is the youngest.
Now, it is visible from the chart above that all of these Bitcoin age ranges have increased in recent months, implying that investors in the market have been holding coins long enough for them to mature in these age ranges.
BTC has experienced quite high volatility recently, but these investors have yet to show any significant changes in their supplies. “This suggests that HODLing remains the key dynamic among long-term investors, hinting that more volatility in price action is needed to entice veterans to spend,” explains Glassnode.
Currently, the supply of the 1+ year cohort represents 67.5% of all circulating BTC supply, a very significant number. The percentages fall naturally with each following group, as your offer cannot be greater than the group above them, as explained earlier.
Generally, the longer an investor holds his coins, the less likely he is to sell them at any time. This is partially due to the fact that the older the coins, the more likely they are to be permanently lost (due to their wallet keys no longer being accessible).
From the graph, it is visible that older age groups generally saw smaller fluctuations compared to younger age groups. This interesting trend shows the aforementioned statistical fact in action.
BTC price
At the time of writing, Bitcoin is trading around $28,000, up 2% over the last week.
Looks like the value of the asset has plunged in the last two days | Source: BTCUSD on TradingView
Featured image of André François McKenzie on Unsplash.com, charts by TradingView.com, Glassnode.com