According to on-chain data, nearly half of the available Bitcoin (BTC) supply has remained flat over the past six months.
Analytics firm Glassnode shows in the latest issue of its weekly newsletter “The Week Onchain” that investors have not “sold the highs” on BTC.
Bitcoin Holders Focus More on Reaccumulation
Bitcoin hit a new all-time high about five months ago, but a significant portion of the BTC investor base continues to double their Bitcoin holdings.
Glassnode’s analysis of the realized market cap HODL wave indicator shows that 45% of all Bitcoin has been sitting dormant in wallets for at least the past half year.
Despite record highs and the resulting volatility, a significant number of market participants are unwilling to do anything.
Long-term holders (LTH) – entities that have held their coins for at least 155 days – have distributed to the market both before and after the all-time high was reached.
“We can also use the 7-day change in LTH supply as a tool to assess the rate of change in the total balance. We see a significant LTH distribution typical of a macro topping formation at the March ATH,” Glassnode explains.
“Less than 1.7% of trading days have seen greater circulation pressure. Recently, this indicator has returned to positive territory, indicating that the LTH group prefers to hold the coin.”
The topic ties into what “The Week Onchain” described as “a noticeable slowdown in LTH circulation pressure.”
“This caused the percentage of network wealth held by this group to first stabilize and then start increasing again,” the report added.
“Despite the significant selling pressure LTH has put on the market ATH, long-term investor wealth remains at historically high levels compared to previous all-time highs.”
Anxiety over BTC selloff spreads across market sentiment
As Cointelegraph continues to report, selling pressure has never left traders’ minds this month.
Related: Bitcoin Price Could Take 3 Months to Catch Up with Gold Rally – Analyst
Concerns about a retest of six-month lows following the massive sell-off in early August were combined with analysis that “old” coins were moving onto the chain.
The recent fluctuations in the Crypto Fear and Greed Index highlight the uncertainty currently prevalent across cryptocurrencies.
In contrast, there is optimism about global liquidity, with some viewing cryptocurrencies as likely to benefit from the easing of monetary policy.
“The global money supply is exploding. Plus, we just came out of four years of massive consolidation,” Charles Edwards, founder of quantitative bitcoin and digital asset fund Capriole Investments, wrote on X this week.
“What do you think this means for Bitcoin?”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.