In a remarkable display of confidence, nearly half of the available Bitcoin supply has remained untouched for the past six months, according to recent data from analytics firm Glassnode. Despite significant market fluctuations and the cryptocurrency reaching new all-time highs earlier this year, 45% of Bitcoin holders have chosen not to move their coins, showcasing a steadfast commitment to their investments.
Long-Term Holders Steadfast Despite Market Swings
Glassnode’s analysis, presented in its weekly newsletter “The Week Onchain,” highlights the behavior of long-term holders (LTHs), defined as entities holding coins for at least 155 days. The data reveals that these LTHs distributed their coins to the market around the time Bitcoin reached its peak, yet a significant portion of the Bitcoin network’s wealth remains in the hands of these committed investors.
Bitcoin realized cap HODL waves chart (screenshot). Source: Glassnode
The realized cap HODL waves indicator, used by Glassnode, shows that a notable slow-down in distribution pressure by LTHs has occurred. This has led to a stabilization and subsequent growth in the wealth held by long-term Bitcoin holders, even after substantial sell-offs earlier in the year.
Market Sentiment Remains Uncertain Amid Sell-Off Fears
Despite the apparent confidence among long-term holders, the broader market sentiment remains cautious. The recent sell-off in early August has left traders concerned about the possibility of retesting six-month lows. The Crypto Fear & Greed Index, which measures market sentiment, reflects this ongoing uncertainty within the cryptocurrency space.
Bitcoin long-term/short-term holder supply ratio chart (screenshot). Source: Glassnode
However, some analysts remain optimistic. Charles Edwards, founder of Capriole Investments, pointed to a surge in global money supply and the breaking of a four-year consolidation pattern as potential catalysts for future Bitcoin gains. Edwards suggests that these factors could lead to a bullish outlook for Bitcoin in the coming months, even as the market navigates its current challenges.
