Although Bitcoin (BTC), may not be making it big at $40,000, new data shows that very few people are interested in selling.
Glassnode, an on-chain analytics company, has data that shows that over 60% of BTC supply has not left its wallet for more than a year, despite volatility in prices.
Strong hands are rarer than stronger
The current Bitcoin market climate is distinguished by the stubborn hodling of long-term investors.
Spot price action had fallen by 50% compared to November’s record highs. Many expected cold feet to set in. But, seasoned hodlers know that the sell-off did not happen.
In reality, it has been the reverse for a long time — long-term investors have been adding to their positions and retaining their BTC exposure.
Glassnode’s HODL waves indicator shows that 60.61% of BTC supply was not used in a transaction within the past year.
Bitcoin HODL Waves chart (screenshot). Source: Unchained Capital
This is a significant figure. Only twice in Bitcoin’s history had the one-year-or more value reached this level.
Alistair Milne (entrepreneur and investor) noted that both events occurred in a downtrend. They also preceded a significant rebound in Bitcoin price action.
Only two instances have been witnessed where the 1yr+ HODL of #Bitcoin was higher (currently 61%). Price range $380-450 in the early 2016 and Mid-2020. Price $9000. Both were during prolonged consolidations before a massive bull move.
— Alistair Milne (@alistairmilne), February 18, 2022
The odds of Bitcoin forming a completely different trend in the medium-term are high. This could defy the generally gloomy narrative about flagging macro support and rising interest rates, as well as geopolitical tensions.
“Long-term HODL’ers patiently HODL’ing because they know what’s likely to come soon,” Philip Swift (an analyst at trading suite Decentrader) added about the data.
Speculators are hurt by short-term moves
While short-term trends are not likely to have any impact on the majority of bitcoins currently in circulation, they do cause some anxiety for this week.
Related: The 2018 Bitcoin price fractal could trap bulls and sink the BTC price down to $25K — analyst
For example, Binance analytics resource Material Indicators observed that support “rugs” were disappearing at $40,000 right before Friday’s plunge to two-week lows.
Here’s an update about #BTC liquidity. It’s not clear if the $13M-raised entity is the one adding $15M. However, I am pretty certain that the one that added is trying control the short-term PA until the positions are filled. For context, please read the. https://t.co/9ibMFXixEg pic.twitter.com/JibCwmmnJd
— Material Indicators (@MI_Algos), February 19, 2022
Cointelegraph also reported that smaller investors have slowened their accumulation activity over the past week.