Bitcoin has attracted a new generation of hodlers over the past three years, as serious investors are holding onto their holdings.
Data from the widely used HODL Waves metric reveals that individuals who bought Bitcoin in late 2020 chose to keep their coins without selling.
Long-Term Holders Continue to Accumulate Bitcoin
Despite the 2023 bull run pushing Bitcoin prices to their highest level in over a year, long-term holders (LTHs) of Bitcoin have shown no inclination to reduce their exposure. The positive momentum in the Bitcoin price is attributed, in part, to the anticipation of the first US-listed Bitcoin exchange-traded funds (ETFs).
The HODL Waves metric, which categorizes the supply of Bitcoin based on the time that has passed since the last transfer of each coin, has revealed a notable increase in a certain age band over the past year.
Coins that haven’t moved for two to three years have significantly expanded their presence within the total supply since the bear market bottomed out in late 2022. Their share, which is about 8% of supply in December last year, has now exceeded 15% to reach. 16%.
That shows that individuals who bought Bitcoin between December 2020 and December 2021 resisted the temptation to engage in mass profit-taking, showing their commitment to keeping their investments.
The Realized Cap HODL Waves, which illustrate the relative weighted value of coin cohorts, also show the most significant gains in percentage of the total realized cap from two to three years of coins.
According to data from on-chain analytics firm Glassnode, as of December 6, the figure for Bitcoin controlled by LTHs stood at 14.92 million BTC, slightly below the all-time high of 14.95 million BTC (76.3% of supply ) which was observed on November 28.
Short-Term Holders Sell
Despite the strength of long-term holders, Bitcoin has seen a remarkable 165% increase year-to-date, according to data from Coingecko, highlighting the overall stability and positive performance in cryptocurrency.
In contrast to strong long-term holders (LTHs) of Bitcoin, short-term holders (STH) or speculators increased their profit-taking activities last week. The surge in Bitcoin prices beyond $40,000 prompted a rapid selling response from these holders, resulting in the liquidation of $4.5 billion worth of BTC within days.
Despite this large sale, it had a limited impact on the spot markets, where LTHs already hold a larger share of supply than before.
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