Long-Term Bitcoin ‘Hodlers’ hold 15% of Circulating BTC Supply
Glassnode data shows that the Bitcoin (BTC) holders (also called ‘hodlers’ popularly, who hold Bitcoin for price appreciation) hold 2,851,608 BTCs out of the total circulating supply of 18,618,081 BTCs. Therefore, the Bitcoin “accumulation addresses” now hold 15.32% of the total Bitcoin supply available in circulation. This is the highest percentage of the circulating supply held by the hodlers in the last three and half years.
Just 3-months back, the Bitcoin holders held less than 14% of the total circulating supply of BTC. This means that the long-term crypto investors are not only continuing to hold the market supply but also sucking up market supply, thereby ultimately helping the largest crypto to maintain its broader upward trajectory.
The accumulation addresses are the ones that have at least two incoming tiny amounts of Bitcoin transfers and have never spent funds. The accumulation addresses don’t consider the ones belonging to miners/cryptocurrency exchanges as well as the ones that are active for over 7-years.
On a year-on-year basis, the Bitcoin balance locked in the accumulation addresses has gone up by 22%. In the last week itself, the number of Bitcoins has increased by 80,000 BTCs. In fact, a sell-side liquidity shortage can be seen as more and more institutional investors continue buying Bitcoin and holding them for longer terms continue.
Other on-chain metrics also indicate a bullish trend. For instance, the number of Bitcoins held in the crypto exchange addresses continue to fall. On Monday, it has come down to 2,349,040 BTCs, a 2.5-year low level. Bitcoin has increased by 6% on Tuesday, breaking out of a 3-week-long descending channel. This breakout indicates an end of the recent pullback to below US$30,000-level from the all-time-high (ATH) of US$41,962 (reached on January 8, 2021). The bull run resumes after this breakout.
