Written by Hazel J. Greene, Senior Analyst

The Bitcoin market continues to fascinate investors and analysts alike as on-chain data reveals a notable trend in long-term holders (LTHs) accumulating the cryptocurrency.

On-chain analytics firm Glassnode reports that BTC long-term holders currently hold a staggering 14.52 million BTC, embodying approximately 75% of the cryptocurrency’s total circulating supply. These LTHs are characterized as individuals who have held their coins for more than 155 days, signifying a steadfast commitment to Bitcoin.

LTHs form a crucial segment of the Bitcoin market, contrasting the short-term holders (STHs) who have acquired Bitcoin within the past 155 days. Statistical analysis reveals that as investors hold onto their coins for longer durations, they exhibit a decreased likelihood of selling. Thus, the LTHs demonstrate unwavering resolve, setting them apart from their short-term counterparts.

A useful indicator to monitor these committed investors is the “LTH supply,” which measures the total quantity of Bitcoin held by LTHs in their wallets. Notably, this indicator has witnessed a consistent upward trend in recent years, except for a decline during the bullish surge in the first half of 2021.

The LTH supply decline during the first half of 2021 was temporary. Since then, Bitcoin LTHs have resumed accumulating, continuously setting new all-time highs in their supply. This resilience suggests that these holders find the current prices inadequate for taking profits, demonstrating a strong conviction in Bitcoin’s long-term prospects.

Considering that LTHs control a significant portion of the circulating supply and continue to accumulate, this trend bodes well for Bitcoin. It signifies a positive sentiment among these investors, highlighting their confidence in the long-term prospects of the asset. However, the benefits of this HODLing strategy are likely to manifest in the long term.

BTC Price:
As of writing, Bitcoin is currently trading around $29,000, experiencing a 3% decline over the past week.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.