Chain data shows that long-term owners of Bitcoin continue to "soak up supply" by $ 30K

Chain data shows that long-term owners of Bitcoin continue to “soak up supply” by $ 30K – Mail Bonus


Bear markets are usually characterized by a surrender event where discouraged investors finally leave their positions and asset prices either strengthen as inflows into the industry decrease or the bottom line begins.

According to a recent report from Glassnode, Bitcoin hodlers are now “the only ones left” and they seem to be “doubling since prices are just under $ 30K.

Evidence of a shortage of new buyers can be found when looking at the number of wallets with non-zero credit, which has reached a high level in the past month, a process that was seen after the sale of the cryptocurrency market in May 2021.

Number of Bitcoin addresses with a non-zero status. Source: Glassnode

Unlike the sales that took place in March 2020 and November 2018, which were accompanied by a boom in chain operations that “started the next bull run”, the latest sales have not yet “encouraged the influx of new users into the space.” Glassnode experts say this indicates that current operations are mainly driven by hodlers.

Signs of high accumulation

While many investors are indifferent to BTC’s pricing measures aside, opposing investors see it as an opportunity to accumulate, a point seen by the Bitcoin accumulation level which “has returned an almost perfect score above 0.9” over the past two weeks.

Bitcoin accumulation trend points. Source: Glassnode

According to Glassnode, high scores for these measures in lower development “generally start after a very significant price adjustment as investor psychology shifts from uncertainty to value accumulation.

The idea that Bitcoin is now in the accumulation phase was also suggested by CryptoQuant CEO Ki Young Ju, who posted the following tweet and asked his Twitter followers “Why not buy?”

A closer look at the data shows that recent accumulation has been largely driven by entities with less than 100 BTC and entities with more than 10,000 BTC.


In recent fluctuations, the total position of parties with less than 100 BTC increased by 80,724 BTC, which Glassnode stated was “remarkably similar to the net 80,081 BTC which was wound up by the LUNA Foundation Guard.”

Bitcoin supply owned by parties with less than 100 BTC. Source: Glassnode

Holders of holdings in excess of 10,000 BTC added 46,269 Bitcoin to their position during the same period, while holders holding 100 BTC to 10,000 BTC “maintained a more neutral rating of around 0.5, indicating a relatively small net change in their holdings.

Connected: Bitcoin’s recent gains have caused traders to fall to the bottom, but various measures remain bearish

Long-term hodlers are still active

Long-term owners of Bitcoin seem to be the main driving force behind current pricing measures as some are actively accumulating and others are making a loss of an average of -27%.

Bitcoin long-term owner spent production profit ratio. Source: Glassnode

Despite the sales that some have witnessed in the long-term holder group, the total supply of these wallets recently returned to an all-time high, 13.048 million BTC.

Glassnode said:

“Unless there is a significant redistribution of currency, we can expect this supply measure to start rising in the next 3-4 months, which indicates that HODLers will continue to drink gradually and keep supply.

Recent fluctuations may have pushed some of the loyal Bitcoin owners out, but the data shows that the majority of serious owners are not willing to spend their supply “even if it is now held at a loss.”

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