On-chain data shows that long-term Bitcoin holders have seen their supply increase recently despite the FUD circulating in the market.
Bitcoin holders’ balances have recently seen an increase
According to data from the market intelligence platform In the blockthe supply of long-term holders has recently expanded. IntoTheBlock defines “long term holders“(LTH) or HODLers as investors who have held their coins for at least a year.
Statistically, the longer a holder keeps their coins inactive, the less likely they are to sell them at some point. Thus, LTHs, which tend to be held for relatively long periods of time, represent the stubborn side of the market.
While the short term holders (STH) While they can easily be sold in a crash or rally, these diamond needles typically remain tight regardless of the sector situation.
Recently, there have been concerns in the Bitcoin market due to the bankruptcy of cryptocurrency exchange Mt. Gox, which redistributed the coins to their rightful owners, and the German government selling the BTC it had confiscated.
Despite this, it seems that HODLers didn’t really care, as their cumulative balance has seen an increase over the past week. The chart below illustrates this development.
Looks like the value of the metric has seen an increase recently | Source: IntoTheBlock on X
Remember that any increase in Bitcoin’s LTH balance does not mean that these HODLers are buying right now. Rather, it suggests that some buying happened a year ago and these coins have matured enough to be part of the cohort.
The sale, however, is immediately reflected on the indicator, as the coins have their age reset to zero as soon as they are moved onto the network, making them no longer counted in the cohort.
As such, while this increase in the metric does not indicate accumulation in the present, it does indicate that investors who bought a year or more ago still feel comfortable HODLing even in recent market conditions.
In other news, an analyst pointed out in a CryptoQuant Quicktake job that the Coinbase Premium Gap has been positive recently. This metric tracks the difference between Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).
The value of the metric appears to have seen a rise in recent days | Source: CryptoQuant
These positive values of the indicator suggest that Coinbase is now seeing higher buying pressure than Binance. The platform is known to be the preferred option for US institutional investors, so it is possible that purchases from these large entities are behind the rally.
BTC Price
Bitcoin is back above the $64,400 level after seeing a surge of more than 12% over the past seven days.
The price of the coin appears to have been going up over the past few days | Source: BTCUSD on TradingView
Featured image by Dall-E, CryptoQuant.com, IntoTheBlock.com, chart by TradingView.com
