In a new tweet, Glassnode emphasizes to its 193,100 subscribers the importance of following the movements of Long Term Holders (LTH).
According to the data analytics company, when long-term holders spend their BTC stash, it’s a signal that the boom cycle is coming to an end. As the cohort took profits as Bitcoin rose from $ 10,000 to over $ 50,000, Glassnode says a new batch of long-term holders are accumulating BTC at current levels.
“By the peak of 2017, LTHs had reduced their holdings from 74% to 58% of the supply in circulation. Currently, the coins accumulated at the end of 2020 are expiring and the supply held by LTH is actually increasing by over 67%. “
Another indicator that Glassnode closely monitors to track long-term holder behavior is the Coin Destroyed Days measure, which examines the value of each Bitcoin transaction while giving weight to the number of days since the coins were last moved.
Crypto Insights Platform Says The 90D Coin Day Destroyed Metric, which quantifies the number of coin days destroyed in the past three months, has returned to a level suggesting long-term investors are holding onto their Bitcoin treasury .
“After a first increase towards the beginning of the year, [90D coin days destroyed] has recovered to near benchmarks, indicating increased reluctance among long-term investors. “
Looking at a period of several years, Glassnode shows increased behavior on the part of long-term investors as the percentage of outstanding supply that has not budged for at least 5 years continues to climb.
“Bitcoin BTC percentage supply for the last active 5+ years just hit a 5-month high of 21.94%”
Over an even longer period, Glassnode notes that the number of parts that have not moved for more than 10 years has reached a new all-time high (ATH).
“The Bitcoin BTC bid amount was last active> 10 years ago just hit an ATH of 2,102,437.584 BTC.”
The surge in hodling behavior comes as chain analyst Willy Woo predicts a BTC supply crisis is looming. Woo says the supply crisis will be more drastic than the one that pushed Bitcoin to rise 2000% in 2017.
“We can see this by tracking the flow of coins off the exchanges, where typically people are speculating or buying and selling their coins, and they have a fixed inventory, part of which is allocated for speculation. We have just seen an unprecedented exhaustion of this inventory.
If you look back into the 2017 bull market, we saw a five-month stock depletion, which was enough to propel the 2017 bull market up to $ 20,000. [mark] from what was initially around $ 1,000 to $ 1,500 when inventory depletion ended, and now we are in that 12 month zone of Lehman’s inventory depletion. “
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Image en vedette: Shutterstock / klyaksun