On-chain data shows that the amount of Bitcoin held by investors for more than a year has reached a new all-time high.
Bitcoin investors have continued to exhibit HODLing behavior
According to data from the on-chain analytics company Glass node, the 1+ year old supply now measures around 13.4 million BTC, a new all-time high. The indicator of interest here is “delivery last active 1+ years”, which keeps track of the total amount of Bitcoin that has been dormant on the blockchain since at least one year ago.
When the value of this metric goes up, it means that a net number of coins are maturing into this group right now. Note that this does not mean that this group is “buying” at this time, as the purchase was actually a year ago, which is why the coins have been able to reach the one-year age limit.
Rather, what this trend of the indicator suggests is that some of the investors have been comfortable sitting on their coins long enough to age into this group recently. Of course, this is usually a sign that the holders have a HODLing mentality at the moment.
On the other hand, however, when the value of the measure drops, it may be a sign that these investors are selling in the moment, as they move their coins around (thus moving their age back to zero). Obviously, not all moves are purely due to selling, but when these experienced hands move their coins, there is a higher than usual chance that they will sell.
Now, here is a chart showing the trend in Bitcoin supply last active 1+ years over the last few years:
Looks like the value of the metric seems to have been going up in recent days | Source: Glassnode on Twitter
As shown in the chart above, Bitcoin supply last active for 1+ years has been rising in an overall uptrend since around the end of the 2021 bull peak. This suggests that the market has primarily engaged in HODLing during this period.
The chart also includes data for another metric, the “net position change” for this indicator, which measures the net amount of Bitcoin leaving or entering the 1+ year supply.
From the graph of this indicator, it is visible that there were some occasions where the trend was temporarily broken. A recent event was back in April of this year when Bitcoin peaked when these investors transferred their coins. Given this timing, it is likely that their selling contributed to the rally ending.
Since then, however, the HODLing behavior has returned to the market, indicating that the experienced hands have continued to hold their coins long enough to mature into this range despite the price volatility (first down and then up) that the cryptocurrency has experienced recently.
Bitcoin supply which was last active for 1+ years has now reached a new all-time high of around 13.4 million following this new accumulation streak.
At the time of writing, Bitcoin is trading around $30,300, up 1% over the past week.
BTC has been consolidating sideways recently | Source: BTCUSD on TradingView
Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Glassnode.com