Despite a five-month price high, long-term Bitcoin bulls remain bullish.

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Bitcoin wallets that haven’t seen any outflows in more than five months and currently hold $754 billion in the asset.

Long-term Bitcoin (BTC) holders are refusing to sell, according to on-chain analytics provider Glassnode, despite the BTC markets rallying to a five-month high.

In its Monday “Week On-chain” report, Glassnode noted that “long-term holders” — BTC wallets that have not seen outflows for more than 155 days — are currently sitting on nearly 13.3 million BTC or 70% of Bitcoin’s supply.

The report notes that long-term holders have increased their collective stash by more than 2.37 million BTC (roughly $134 billion at current prices) over the past seven months. With only 186,000 BTC being newly minted by miners during the same period, Glassnode concluded that long-term whales are accumulating 12.7 times more BTC than is created.

Despite long-term holders refusing to sell, Glassnode noted an uptick in on-chain activity as Bitcoin’s price pushed up to a local high of $57,860 on Tuesday.

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October has seen the number of active addresses on-chain increase 19% to 291,000 — levels not seen since the lead up to December 2020’s meteoric bull-trend. Glassnode suggested the spike in activity could foreshadow further bullish momentum, stating:

“More active market participants have historically correlated with growing interest in the asset during early stage bull markets.”

According to the report, the median transaction size has increased to roughly 1.3 BTC per transfer, indicating an increase in institutional-sized capital flows on-chain. The median transaction size in August was as low as 0.6 BTC per transfer.

Last week, the Bitcoin network reached its highest daily value settlement of $31 billion.

On Tuesday, Glassnode reported that Bitcoin balances on centralised exchanges had dropped to a three-year low of 2.4 million BTC, indicating that many investors are opting to hold for higher prices.

According to industry observers, whales may be ahead-running the BTC markets in anticipation of the approval of a Bitcoin exchange-traded fund later this month.

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