Bitcoin HODLers Unfazed by Recent Volatility: Glassnode
On-chain data from Glassnode shows that the recent volatility has not been enough to make the ‘diamond hands of Bitcoin’ move.
Long-term owners of Bitcoin continue to increase their holdings
According to data from the analysis company at the chain Glass node, HODLing has remained the main dynamic among the long-term holders. The “Long-Term Hold” (LTH) group is a Bitcoin cohort that includes all investors who have held their coins since at least 155 days ago.
An indicator called “Supply Last Active Age Bands” can break down the total amount of supply that each “age band” in the market has right now. Coins are divided into these age groups based on the total time they have been dormant on the blockchain.
With the help of this calculation, not only the supply of LTHs in general can be traced, but the behavior of the different segments of this group can also be studied.
In the context of the current discussion, the relevant parts of the LTHs are those bearing coins since at least one year ago. To be more specific, the age groups considered here are the groups 1+ years, 2+ years, 3+ years, 4+ years and 5+ years.
Here is a chart showing the trend in the supply of these LTHs over the entire history of the cryptocurrency:
The values of these metrics have only gone up in recent days | Source: Glassnode on Twitter
Note that the age bands here have no upper limits. This means that the younger groups also include the supplies of the age groups that are older than them. For example, the 1+ year band includes the combined data of all these other bands, since it is the youngest.
Now, it is visible from the graph above that all these Bitcoin age bands have risen in recent months, suggesting that the investors in the market have held coins long enough for them to mature in these ranges.
BTC has experienced quite high volatility recently, but these investors still haven’t seen any significant changes in their supplies. “This suggests that HODLing remains the primary dynamic among long-term investors, and insinuates that additional volatility in price action is needed to entice old hands to spend,” explains Glassnode.
Currently, the supply of the 1+ year cohort is 67.5% of the entire circulating BTC supply, a very significant figure. The percentage naturally falls with each next group, as their offer cannot be greater than the group higher to them, as explained earlier.
Generally, the longer an investor holds their coins, the less likely they are to sell at any time. This is partly due to the fact that the older the coins are, the more likely they are to have been permanently lost (due to the keys to their wallets no longer being available).
From the diagram it is visible that the older age groups have generally observed smaller fluctuations compared to the groups younger than them. This interesting trend shows the aforementioned statistical fact in action.
BTC price
At the time of writing, Bitcoin is trading around $28,000, up 2% in the last week.
Looks like the value of the asset has plunged in the last two days | Source: BTCUSD on TradingView
Featured image from André François McKenzie on Unsplash.com, Charts from TradingView.com, Glassnode.com
