HODLers buy 15,000 BTC per month
On-chain data shows that Bitcoin HODLers are currently exhibiting net accumulation behavior, as they increase their holdings by 15,000 BTC per month.
Bitcoin long-term owners have been accumulating lately
According to data from the analysis company at the chain Glass node, these investors previously distributed aggressively during bear market downturns. The HODLs, or more formally, “long-term holders” (LTHs), make up a Bitcoin cohort that includes all investors who have held their coins since at least 155 days ago.
The LTHs form one of the two main holder groups in the market; the second group is called the “short-term holder” (STH) group and naturally only includes investors who bought their BTC less than 155 days ago.
Statistically, the longer a holder owns a coin, the less likely they are to sell it at any time. This means that the LTHs are the more determined bunch of the two groups, which is why they are called “HODLers” or the diamond hands of the market.
Since these investors are an important part of the sector, their movements may be worth tracking. An indicator called “HODLer Net Position Change” measures the monthly price at which these investors are buying or selling a net amount of Bitcoin right now.
The chart below shows the trend in this calculation in recent years:
The value of the metric seems to have been green in recent months | Source: Glassnode on Twitter
When the HODLer net position change has a positive value, it means that these investors are receiving inflows into their holdings at the moment. On the other hand, negative values suggest a net number of coins going out of supply for the LTHs.
As shown in the graph, the Bitcoin HODLer net position change had a deep red value during the bear market that followed the FTX crash in November 2022. This means that the LTHs had sold during this period.
However, this sharp negative peak has been an exception to the long-term trend, as HODLers have actually shown a generally strong accumulation behavior over the past couple of years. The last time these investors participated in consistent distribution was during the bull rally in the first half of 2021.
From the chart, it is visible that after the aforementioned brief distribution period at the bear market low, the LTHs switched back to accumulation just before the current rally began.
These diamond hands have continued to increase their holdings throughout the rally so far, showing that they have not been lured by the opportunity for profit taking. This could be a bullish sign for long-term sustainability of the rally.
Although, very recently, the monthly amount that they have been adding to their holdings has been going down. Nevertheless, the indicator’s value is still positive, as the Bitcoin LTHs are accumulating at a rate of 15,000 BTC per month currently.
BTC price
At the time of writing, Bitcoin is trading around $29,100, up 1% in the past week.
BTC has seen some heavy fluctuations during the past day | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, Charts from TradingView.com, Glassnode.com
