Bitcoin

Change

In a significant development for the world&#8217;s leading cryptocurrency, Bitcoin, long-term holders (LTHs) have reached an all-time high, now holding a staggering 78% of the total circulating supply. LTHs are investors who exhibit strong conviction in Bitcoin and tend to hold their coins for extended periods. This group has earned the nickname &#8220;diamond hands&#8221; due to their unwavering commitment during market fluctuations.



Recent on-chain data reveals a growing trend towards a HODLing mentality among Bitcoin investors, as indicated by the &#8220;percent young vs old supply&#8221; chart. Over the past couple of years, the percentage of total Bitcoin supply held by LTHs has steadily increased, signifying their belief in the long-term potential of the cryptocurrency.



Source: Glassnode


To add to this positive momentum, blockchain analytics firm Glassnode reports that LTHs have been taking advantage of the recent price dip to accumulate more Bitcoin. The Long-term Holder Net Position Change indicator, which tracks the net amount of Bitcoin entering or leaving exchange wallets held for over six months, has witnessed a surge in the past four weeks. This net accumulation is occurring at the fastest pace since October 2021, suggesting heightened confidence among long-term investors.



Notably, the recent increase of 300,000 coins in long-term holder supply occurred 155 days after the <a href="https://news.todayq.com/news/celsius-wires-over-247-million-in-wbtc-tokens-to-ftx-amid-liquidity-crisis/">collapse</a> of FTX, a major cryptocurrency exchange. It appears that LTHs, even during a tumultuous event like the FTX collapse, remained resolute in their convictions, demonstrating their steadfast commitment to Bitcoin.



Concurrently, short-term holders have reduced their supply by the same amount of 300,000 coins. Short-term holders typically have a shorter investment horizon and may be more susceptible to market volatility. The shift of coins from short-term holders to long-term holders indicates a transfer of ownership from those seeking quick gains to individuals with a long-term perspective.



The implications of this <a href="https://news.todayq.com/news/bitcoins-long-term-holders-accumulate-as-correlation-with-nasdaq-keeps-declining/">trend</a> are significant for Bitcoin and its future trajectory. The increasing dominance of LTHs in the circulating supply indicates a growing level of stability and a reduced likelihood of sudden sell-offs that could trigger market downturns. The accumulation of Bitcoin by long-term investors during market downturns also suggests their confidence in the asset&#8217;s long-term value and potential for growth.



As the &#8220;diamond hands&#8221; continue to accumulate Bitcoin during price dips, it reinforces the narrative that Bitcoin is an asset worth holding for the long haul. This influx of institutional and retail investors with a long-term mindset adds further credibility and stability to the cryptocurrency market, attracting more participants and potentially driving the price of Bitcoin higher.



The surge in long-term holder supply, reaching an all-time high, underscores the growing faith in Bitcoin&#8217;s future among dedicated investors. Their steadfast commitment and conviction during market volatility, as exemplified by the recent accumulation following the FTX collapse, reinforces Bitcoin&#8217;s resilience. This trend may have a positive impact on Bitcoin&#8217;s stability, attracting more investors and potentially driving its price upwards in the long run.
© Todayq News

Bitcoin’s “diamond hands” holders reach record high amidst market volatility

Todayq News

Other articles published on May 22, 2023

Ex-Coinbase CTO: ‘Apple and Google are systemic risks to crypto’; This is why

Tornado Cash attacker proposes to return control

Strike Expands Global Presence, Moves Headquarters to El Salvador

Beginner’s Guide about BRC-20 tokens – Part 1

Big Altcoin Portfolio Change For Big Gains

Beginner’s Guide about BRC-20 tokens – Part 2

Join our free newsletter for daily crypto updates!