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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Long-Term Holder Supply Reclaims ATH, Return Of Conviction?

Keshav Verma
Keshav Verma
1 year ago
2 mins read

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Data shows the Bitcoin long-term holder supply has climbed back up and set a new all-time high, suggesting that conviction may be returning in the market.

Bitcoin Long-Term Holder Supply Recovers From FTX Panic Selling

According to the latest weekly report from Glassnode, BTC long-term holders now hold around 72.3% of the total circulating supply. The “long-term holder” (LTH) group is one of the two major cohorts in the Bitcoin market and includes all investors who have been holding onto their coins for at least 155 days ago, without having moved or sold them from their wallet.

Related Reading: Bitcoin NVT Golden Cross Still In “Overbought” Region, Volatility To Follow?

“Short-term holders” (STHs) make up the other side of the market. Statistically, the longer investors hold their coins, the less probable they become to sell at any point. Therefore, LTHs are the more resolute group of the two and are sometimes dubbed the “diamond hands” of the market.

The “LTH supply” is an indicator that measures the total amount of BTC that these HODLers as a whole are currently carrying in their wallets. Here is a chart that shows the trend in this metric over the last few years:

Bitcoin Long-Term Holder Supply

Looks like the value of this metric has seen an increase in recent days | Source: Glassnode's The Week Onchain - Week 50, 2022

As the above graph shows, the Bitcoin LTHs displayed a strong accumulation trend between July and early November, causing their supply to reach a new height. However, the crash due to the collapse of the crypto exchange FTX completely reversed the trend as these holders quickly started shedding off their holdings instead.

This decline in the indicator suggests that the crash made even these resolute holders panic and sell off their coins. But in the last few weeks, tides have once again seemed to have shifted. As the market has traded sideways, the LTH supply has observed a constant rise, implying that these investors are back at accumulating.

The metric has now fully retraced the drawdown due to the FTX debacle and has set a new all-time high of 13.9 million BTC, corresponding to about 72.3% of the total circulating supply.

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The 155-day threshold would put the source of this new streak of accumulation back in June and July of this year, which is when the deleveraging event due to the 3AC collapse took place.

This new rise in the LTH supply means the conviction is returning among these Bitcoin HODLers, something that has historically been bullish for the price in the long term.

Bitcoin Price Chart

BTC seems to have bounced back from yesterday's fall | Source: BTCUSD on TradingView

At the time of writing, Bitcoin’s price is trading around $17.2k, up 1% in the last week.

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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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