Data shows that despite the $69,000 record highs, most Bitcoin hodlers are not spending any coins.
The Coin Days Destroyed (CDD), a metric developed by Glassnode on-chain analytics firm, shows that the percentage of coins being spent in the hands of old people is at or near record levels.
In 2021, strong hands will keep the wheels turning
CDD is extremely calm, the latest sign that Bitcoin investors and holders have been found guilty.
This indicator shows how long each BTC has been idle before it starts moving. This is an alternative to volume measurements that can be used to identify market trends. Therefore, older coins are more valuable than those with a long history of active movement.
“Despite a rise in the last few months the current value remains around historic lows,” tweeted UTXO Management.
Annotated chart of Coin Days Destroyed (CDD). Source: UTXO Management/ Twitter
This data shows that strong hands have held firm since the spike in old-hand selling after BTC/USD reached 2017’s record high of $20,000 last.
The trend was not broken by the $70,000 increase, but sellers are still coming from newer markets.
Winter sellers are summer buyers
Unchained Capital’s HODL waves confirms that this is true — the largest decrease in overall supply now comes from coins bought between three and six month ago.
Related: Countdown until the yearly close: 5 things you should be watching in Bitcoin this week
This means that sellers bought their BTC during the June-September period, when BTC/USD dropped to $30,000.
Chart of Bitcoin HODL Waves. Source: Unchained Capital
Cointelegraph reported that clear distinctions between hodlers and hodlers have been known for a long time.
BTC/USD is expected to finish 2021 at around $20,000 more than it was at the beginning of January.
#Bitcoin is back in accumulation mode pic.twitter.com/BezC2AUewO
Dylan LeClair (@DylanLeClair_ December 23, 2021
Dylan LeClair, senior analyst at UTXO Management, noted last week that hodlers are increasing their positions overall.