These long-term holders (LTH) appear to be reducing their spending while continuing to add to their positions, according to the Nov. 22 report by analytics provider Glassnode.

The investigation focused on Spent Volume Age Bands (SVAB), which are used to determine the age of coins that are dominating on-chain flows on any particular day. According to Glassnode, the metric can be used to determine when profit-taking or accumulation begins.

Spending of coins older than a month began in November 2020 and ceased in April and May 2021. Since concurrently surging with the BTC all-time high in October, the SVAB measure has fallen down to 2.5 percent of daily volume. Glassnode made the following observation:

“This can reasonably be interpreted as longer term holders reducing their spending, and thus are more likely to be adding to positions, not exiting them.”

Source: Glassnode

Glassnode also indicated that the total supply held by short-term hodlers (STH) is at a multi-year low, at less than 3 million BTC – which in turn means that the amount held by LTHs is at a multi-year high.

The report stated that “seeing STH supply this low whilst price is near ATHs is a relatively unique case.”

Although short-term holders have taken profits at “historic” high points and broken even at low points over the past week, the market is still yet to become “overly saturated with profit-taking.”

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The findings suggest that a significant surrender is unlikely to occur anytime soon, and that the bulls may have more room to go before the cycle ends.

Despite no withdrawals for more than five months, long-term holders were reported to be sitting on 13.3 million BTC, worth $754 billion at the time, on October 12.

In response to the revelation, Chinese journalist Colin Wu tweeted on Nov. 22 that the number of non-zero addresses had also reached an all-time high. Despite the asset’s 18 percent drop from its mid-October peak price of $69K, this shows that adoption and accumulation are continuing.