Bitcoin ‘liveliness’ lowest since 2021 amid new 5-year BTC hodl record
Bitcoin (BTC) long-term holders are scrambling as a record portion of BTC supply remains dormant for years.
Data from chain analysis firm Glassnode confirms that the percentage of supply that has now been stationary for at least five years is higher than ever.
2017 BTC buyers not this year’s sellers
Bitcoin has recovered nearly 40% from its macro lows of $17,600 just two months ago, but for the cryptocurrency diamond hands, it has been a non-event.
Those who bought BTC in 2017 or earlier continue to hold onto their holdings, and the trend points to more, not less, hoarding in recent times.
Unhappy with the pullback above the 2017 highs of $20,000, long-term owners remain committed to not selling, the Glassnode data shows.
On August 18, the percentage of BTC supply that remained untouched in the wallet for at least five years reached a new all-time high of 24.351%. Almost a quarter of the circulating supply of 19.12 million BTC has thus been out of the market since 2017 or earlier.
While recent months have been characterized by heavy selling, particularly among institutional investors, it therefore appears that hodlers are truly unaffected by today’s narratives.
Earlier, Cointelegraph reported on Bitcoin’s HODL Waves calculation showing a similar story for slightly “younger” coins held for a year or more.
Not so live
A similar story, meanwhile, is coming from Bitcoin’s “liveliness” — a metric of hodler behavior that hit its lowest since the start of 2021 this week.
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Liveliness, a term coined by Bitcoin developer Tamas Blummer, is plotted as a score between 0 and 1, which increases or decreases depending on how much hodler sales occur.
As Glassnode neatly summarizes, it’s “the ratio of the sum of coin days destroyed to the sum of all coin days ever created.” Coin Days Destroyed refers to the reset of the counter when each Bitcoin moves, the “days” refers to days spent dormant, not moving around the network.
“It is clear that Liveliness increases (and HODL decreases) during periods of Bitcoin price increases and investors accumulate to HODL during periods of range-bound prices,” Blummer explained in a dedicated introduction to the Liveliness metric published in late 2018.
Now at a 19-month low, Liveliness points to increasing desire to hoard the Bitcoin network in general.
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