On-chain data shows that long-term Bitcoin holders have seen their supply register grow sharply over the past month.
Bitcoin Long Term Owner Supply Is Growing Fast Right Now
As explained by CryptoQuant community manager Maartunn in a new post on X, the supply of BTC has recently increased from a group of long-term holders. “Long-term holders” (LTHs) refer to Bitcoin investors who have been holding on to their coins for more than 155 days.
LTHs make up one of the two main categories of the BTC sector that are made on a holding basis, with the other group known as “short-term holders” (STHs). STHs generally represent the volatile side of the market, while LTHs contain strong hands.
There are many indicators to track the behavior of these two groups, one such indicator is LTH Net Position Change. This metric measures, as its name implies, the total changes in aggregate supply held by HODLers. If the value of this metric is positive, then the supply of LTH is increasing. On the other hand, if it is less than zero, it suggests that the total number of coins is out of the holding of this collection.
Now, here is a chart showing the trend in the change of Net Position of Bitcoin LTH for 30 days in the history of cryptocurrency:
The value of the metric appears to have seen a large positive spike in recent days | Source: @JA_Maartun on X
As shown in the graph above, the 30-day Bitcoin LTH Net Position Change has dropped to sharp negative values ​​as the price of BTC has moved to an all-time high (ATH) in the first quarter of the year. This would suggest that even these investors who don’t usually sell easily, can escape the struggle of profit taking that came from this round. This takes the advantage out of the hands of the diamond and continues for a while, even when the coin is out.
In recent months, however, the metric has shown a turnaround, with the biggest increase coming within the last month. In the last thirty days, the supply of LTHs has grown by 959,000 BTC, which is quite a significant amount. Something that should not be misconstrued, however, is what this beautiful Net Position change means. LTHs have not ‘bought’ anything for this spike, all that has happened is that other coins, which were bought 155 days ago, have now been held long enough to qualify for this group.
While HODLer accumulation has this 155 day delay attached to it, the same is not true for sales. Coins come out of the LTH supply as soon as they break their dormancy through transactions on the network, so sales can be considered to be immediately reflected in the index.
Diamond hands may or may not have participated in the recent Bitcoin ‘buying’, but the fact that the coins are maturing on the network is still a good sign in any case, as it suggests that investors are willing to HODL right now.
BTC price
Bitcoin is down another 3% in the last 24 hours, now down to the $60,800 mark.
Looks like the price of the coin has been slipping down recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com