Following a new surge in profit-taking, long-term Bitcoin holders are once again selling coins at the same pace they did in 2020.
According to research from on-chain analytics company Glassnode, approximately three-quarters of circulating Bitcoin last passed on the blockchain when rates were around $10,800, implying that the majority of market investors are long-term holders.
Glassnode’s March 29 ‘Week on Chain’ report found that 25.43% of circulating BTC last traded between the prices of $10,800 and $58,800. With Bitcoin trading for $10,800 just six months ago, the data suggests one-in-four circulating BTC last changed hands during either Q2 2020 or Q1 2021.
According to the survey, the number of long-term Bitcoin bulls is increasing, with several coins that have been inactive since the beginning of the new trading cycle now known as long-term holds, or LTH — coins that have not passed on-chain for at least 155 days.
As a result, the number of coins listed as “illiquid supply” has increased in 2021. The Illiquid Supply Change metric has shown that the 30-day supply change is shifting from a liquid or easily exchanged state to an illiquid state representing HODLed coins.
According to the survey, accumulation rates of more than 130k BTC per month have been regularly held in this bull market.
Glassnode’s Coin Days Destroyed metric, or CDD, also shows accelerated hodling by long-term holders, with CDD signalling that veteran investors are once again realising returns at a pace comparable to 2020 after a burst in profit-taking between November and January.
“The takeaway here is that buyers and traders have managed to buy into BTC in this bull market,” Glassnode said.
Bitcoin’s “Hodlwave” metric, which visually breaks down Bitcoin’s availability depending on when coins were last transported on-chain, indicates an increase in both long-term hodling and short-term circulation in the face of existing market conditions.
According to Unchained Capital’s Hodlwaves, two-thirds of Bitcoin’s stock has changed hands in the last six months, with about half of the movement occuring in January or February. About 5% of BTC’s stock has been active in the last seven days.
According to CoinGecko, Bitcoin was trading up 4% in the previous 24 hours at $57,500 at the time of publishing.
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