Record Highs In Long-Term Holdings Signal A Bullish Horizon

Amid fluctuating markets and economic uncertainty, Bitcoin long-term investors hold their coins tighter than ever. Data from blockchain analysis firm Glassnode reveals a notable trend: a significant portion of Bitcoin’s circulating supply is firmly in the hands of long-term holders, with figures reaching record heights.

Notably, the trend of Bitcoin being tightly held is not a new phenomenon, but the level of accumulation we’re witnessing today appears unprecedented. Glassnode’s research points out that the community of long-term Bitcoin holders is not just growing but doing so at an “impressive rate of accumulation.”

This cohort’s commitment is evidenced by the historical highs in key supply metrics—illiquid supply, coins held (HODLed), and long-term holder supply—are all at their peak, according to shared Glassnode insights.

A Dive into Bitcoin’s Illiquid Supply 

Glassnode’s briefing depicted the Bitcoin market’s current state. The data illustrates that 68% of Bitcoin’s circulating supply has not moved for more than a year, indicating a decision by investors to hold through volatility and market dips.

Category of Bitcoin supply that hasn’t moved in over a year. | Source: Glassnode

The metric for coins held for over five years is even more telling, constituting nearly a third of all Bitcoin in circulation. In terms of Bitcoin’s illiquid supply—coins held in wallets with little to no spending history—the figures are also at an all-time high, with over 15.4 million BTC firmly held.

This illiquidity is not a static condition as it is growing monthly at 71,000 Bitcoin, according to Glassnode’s analysis.

Amount of Bitcoin that is not readily available for trading or transactions
Amount of Bitcoin that is not readily available for trading or transactions. | Source: Glassnode

According to a Glassnode analyst, this accumulation has coincided with a notable pattern of investors pulling their Bitcoin from exchanges into private custody, further solidifying the trend of long-term holding. The analyst disclosed:

The data suggests investors are continuing to withdraw their coins into custody, with over 1.7 million bitcoin doing so since May 2021.

Bitcoin: Divergence In Holders And Latest Price Action

Glassnode’s report also highlights a significant divergence between the behaviors of long-term and short-term Bitcoin holders. While long-term supply is seeing historic highs, short-term holder supply is at record lows, indicating a change in spending habits after the currency’s surge above the pivotal $30,000 benchmark. 

Divergence between Bitcoin's long-term and short-term holders.
The divergence between Bitcoin’s long-term and short-term holders. | Source: Glassnode

Glassnode’s analysis suggests this price point is a crucial battleground for bullish sentiment, marking a potential inflection point in the market’s trajectory.

Meanwhile, over the past week, Bitcoin has continued its bullishness, recording a gain of 2.9%. The asset currently trades for $35,216 at the time of writing, up by 1.5% in the past 24 hours.

Bitcoin (BTC) price chart on TradingView
BTC’s price is moving sideways on the 4-hour chart. Source: BTC/USDT on

Featured image from iStock, chart from TradingView

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