While Bitcoin Price Rises, Long-Term Investors Reach New Records!

• With the upcoming Bitcoin halving event less than five months away, long-term BTC holders have remained optimistic about not parting with their assets.
• Glassnode has found that over 68% of BTC supply has been active more than a year ago. Furthermore, 57.1% of the supply was last active more than two years ago, 41.1% over three years ago, and 29.6% over five years ago.
• The ratio of HODLers Net Position Change between long and short-term holder supply shows a discrepancy between stagnant and moving supply.

Long-term investors in Bitcoin remain strong, according to Glassnode’s new report: What about short-term investors?

Long-Term Investors in Bitcoin

With the upcoming Bitcoin halving event less than five months away, long-term BTC holders have remained optimistic and continue to HODL their assets. According to Glassnode’s weekly report on the on-chain platform, many measures of Bitcoin supply, including long-term holders and illiquid ones, are being held at “extremely tight” levels and are at all-time highs.

Glassnode noted that the relative ratio of circulated supply held for more than a year, a measure of a supply that’s been held for more than one year, has reached all-time highs despite investor sentiments around impressive price performance of crypto assets since the beginning of the year and the upcoming halving event.

The market intelligence platform found that over 68% of BTC supply has been active more than a year ago. Furthermore, 57.1% of the supply was last active more than two years ago, 41.1% over three years ago, and 29.6% over five years ago. Glassnode said:

“While the Long Term Holder (LTH) supply is near all-time highs, Short Term Holder (STH) supply is effectively at all-time lows. This significant dynamic implies that current holders are becoming increasingly less willing to part with their assets.”

Examining On-Chain Supply Metrics

To support its findings, Glassnode examined illiquid supply and HODLers Net Position Change metrics. The illiquid supply metric measures the amount of BTC held in wallets with a low spending history. Changes in illiquid supply typically move in tandem with withdrawals from exchanges.

The metric, with 15.4 million BTC, is at all-time highs, indicating that investors are continuing to withdraw their funds and move them to storage. The monthly change in illiquid supply shows an increase of over 71,000 BTC. Glassnode also found the same pattern in the HODLers Net Position Change metric, which measures the total maturation of BTC supply as players continue to accumulate and hold their assets.

The ratio of HODLers Net Position Change between long and short-term holder supply shows a discrepancy between stagnant and moving supply, with the metric consistently seeing inflows since June 2021 and reaching new highs since July 2023.