On-chain data shows that Bitcoin diamond hands held for over five years have continued to be strong despite the latest crash.
Over 30% of the total Bitcoin supply has not moved in 5 years or more
In a new job On X, market intelligence platform IntoTheBlock talked about what the percentage of the total circulating Bitcoin supply held by investors who bought more than five years ago looked like recently.
Statistically, the longer a holder holds onto his coins (or, to be more precise, UTXO) dormant, the less likely they are to transfer or sell them on the network. Thus, the “long term holder“The cohort (LTH) is seen as bearing the relentless hands of the market.
IntoTheBlock defines LTH as investors who bought at least a year ago, so the holders who are at the center of the current discussion, those who have been silent for at least five years, would be considered the most resilient, even among these LTHs.
It should be noted, however, that as coins age beyond five years, the risk that they have been lost increases. Their keys have been misplaced or their existence forgotten, meaning they will likely never return to circulation.
Still, a large portion of the supply would still correspond to HODLing behavior. As IntoTheBlock notes, “while some of this could be attributed to lost funds, a majority likely belongs to long-term holders.”
Now here is a graph that shows the trend of the supply held by this particularly old segment of LTHs over the last decade:
The value of the indicator appears to have been going up over the years | Source: IntoTheBlock on X
As the chart above shows, the supply of these diamond hands had declined earlier in the year, suggesting that some of these investors had decided to move their coins, perhaps to sell them.
From the trajectory of the indicator on the chart, it is clear that this event was quite rare, as these resolved LTHs do not participate in sales. Since the pullback, however, the indicator has returned to its upward trajectory, potentially suggesting that the cohort’s selling appetite has already cooled.
THE last accident The cryptocurrency, which hit its lowest level since February, naturally failed to panic these veterans either, as they have weathered deeper falls before. “This shows that despite market fluctuations, there is a solid core of Bitcoin believers,” notes IntoTheBlock.
This segment of Bitcoin LTHs currently controls over 30% of the supply, implying that a third of the cryptocurrency’s total supply has not moved in over five years.
BTC Price
At the time of writing, Bitcoin is trading at around $55,600, down more than 9% from last week.
Looks like the price of the coin has seen a plummet over the last few days | Source: BTCUSD on TradingView
Featured image by Dall-E, IntoTheBlock.com, chart by TradingView.com
