In the world of Bitcoin (BTC), there exists a group of holders known as the “long-term holders.” These individuals are distinguished by their unwavering commitment to their investments, as they retain ownership of their coins for a minimum of 155 days. Remarkably, this dedicated cohort currently wields an unprecedented level of control over the circulating supply of this popular cryptocurrency, amounting to a remarkable three-fourths of the total.
Glassnode, a reputable blockchain analytics firm, diligently tracks and analyzes the movement of these long-term holders. Their data reveals a significant surge in the balance held within these specific wallets. In just one month, the balance has surged by an impressive 62,882 BTC, translating to a staggering value of $1.83 billion. This surge has propelled the total number of BTC in these wallets to a historic high of 14.52 million, effortlessly surpassing the previous peak recorded on May 21, where the number stood at 14.48 million BTC.
In light of this remarkable achievement, the long-term holders now possess a substantial 75% of the entire circulating supply of Bitcoin, which currently stands at 19.437 million BTC. The term “circulating supply” denotes the number of coins actively available for trading in the market.
Bitcoin Holders: Noteworthy Insights, HODLing Dominance
The data and trends observed by Glassnode have sparked noteworthy insights into the behavior of mature investors within the market. As evidenced by the current scenario, these investors are strongly inclined towards “HODLing,” a term popularly used in the crypto community to signify the act of holding onto one’s assets for extended periods with the belief in long-term value appreciation. This strategy appears to be the preferred market dynamic among these seasoned individuals.
Additionally, another interesting trend observed is the consistent flow of funds into wallets controlled by “illiquid entities.” These entities are participants in the Bitcoin network who have a limited or non-existent history of spending their coins. The persistent influx of funds into such wallets indicates a continued accumulation of Bitcoin by these entities. This, in turn, suggests that the selling pressures on the market have weakened, as these entities are less likely to part with their accumulated assets.
To further emphasize this point, the number of coins held by these “illiquid entities” has impressively surged by over 90,000 BTC in just one month, providing compelling evidence of their growing influence in the market.
In conclusion, the dominance of long-term Bitcoin holders, coupled with the sustained accumulation by illiquid entities, signifies a robust market where mature investors are strategically holding onto their assets and contributing to the overall resilience and strength of Bitcoin’s value in the face of varying market pressures.