Research by on-chain analytics provider Glassnode found that around three-quarters of Bitcoin in circulation was last transferred to the blockchain when prices were below $ 10,800, suggesting that most players in the market are long term holders.
Glassnode March 29Week on the channelThe report found that 25.43% of the BTC in circulation was last traded between the price of $ 10,800 and $ 58,800. With Bitcoin trading for $ 10,800 just six months ago, data suggests that one in four outstanding BTCs last changed hands in Q2 2020 or Q1 2021.
The report notes that the number of long-term Bitcoin bulls continues to increase, with many coins that have been dormant since the start of the current market cycle are now classified by Glassnode as long-term holdings, or LTH – coins that have not evolved. chain for at least 155 days.
As a result, the number of coins classified as entering an ‘illiquid supply’ increased in 2021. Measuring the change in illiquid supply showed that the 30-day change in supply changes from a liquid state to a liquid state. easily traded to an illiquid state. representing HODLed parts.
The report observed that accumulation rates exceeding 130k BTC per month were consistently maintained in this bull market.
Glassnode’s Coin Days Destroyed metric, or CDD, also indicates an increase in hodling among long-term investors, with CDD suggesting seasoned investors are once again making gains at a rate comparable to 2020 after a surge in profit-taking between November and January.
“The take-home message here is that investors and traders have continued to buy BTC, throughout this bull market,” Glassnode said.
Bitcoin’s “Hodlwave” metric, which visually breaks down Bitcoin’s supply based on when the coins were last moved on the chain, shows a spike in both long-term hodling and in short-term circulation under current market conditions.
According to Unchained Capital’s Hodlwaves, two-thirds of Bitccoin’s supply changed hands in the past six months, about half of which last was in January or February. About 5% of the BTC supply was active in the past seven days.
At the time of writing this article, Bitcoin was trading up 4% in the past 24 hours at $ 57,500 according to CoinGecko.