Bitcoin Diamond Hands Remain Strong As Supply Hits New ATH

On-chain data shows the Bitcoin diamond hands continue to hold strong as their supply has now hit a new all-time high.

Bitcoin Long-Term Holder Supply Has Risen To A New ATH

According to the latest weekly report from Glassnode, the long-term holders now carry 14.46 million BTC. The “long-term holders” (LTHs) here refer to one of the two main cohorts into which the Bitcoin market is generally divided.

This group includes all investors holding their coins since at least 155 days ago without moving or selling them on the network. The other side of the sector comprises the “short-term holders” (STHs), natural investors carrying their coins since they are less than this threshold amount.

Statistically speaking, the longer an investor holds onto their coins, the less likely they become to sell at any point. Due to this reason, LTHs make up the part of the market with a stronger conviction. This cohort is also sometimes called the “diamond hands” of the market because of this fact.

The LTHs comprise an important market part, so their behavior can be worth looking at. One indicator that helps track their movements is the “LTH supply,” which measures the total amount of Bitcoin currently being held in the wallets of these investors.

Now, here is a chart that shows the trend in this BTC indicator over the last few years:

The value of the metric seems to have been climbing in recent days | Source: Glassnode's The Week Onchain - Week 21, 2023

As displayed in the above graph, the Bitcoin LTH supply declined during the first half of 2021, when the bull run occurred. This means that the profit-taking situation of the rally had managed to tempt even these diamond hands into selling back then.

Following the rally, however, these investors started showing a trend of accumulation again and have since added a net amount of coins to their wallets. The uptrend was initially sharp, but the metric mostly moved sideways between the highs of the bull run in the second half

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Author: Hououin Kyouma

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