Bitcoin Long-Term Holder Spending Spikes, But How Does It Compare With Last Bull Market?

On-chain data shows that spending from Bitcoin long-term holders has spiked recently. Here’s how the current levels compare with the 2021 bull run.

Bitcoin 1+ Years Coins Have Been On The Move Recently

According to data from the on-chain analytics firm Glassnode, old hands have spent $295 million worth of the asset in recent days. The relevant indicator here is the “revived supply last active 1+ years,” which measures the total amount of tokens (in USD) that Bitcoin investors holding since at least one year ago are transferring/moving on the blockchain right now.

The 1+ years group forms a segment of a larger cohort: the “long-term holders” (LTHs). The LTHs include all investors who bought their coins more than 155 days ago. Therefore, the 1+ years group includes the more experienced investors even among the LTHs.

Generally, the longer an investor holds onto their coins, the less likely they become to sell them at any point. As such, the LTHs usually hold for long periods (hence their name) and don’t sell easily even when the market is going through a panic.

Assuming that the movements being made by these investors are for selling (which is usually the case when dormant coins move), the revived supply last active 1+ years indicator tells us about the times that these experienced hands do end up participating in some selling.

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

Looks like the value of the metric has registered a sharp increase in recent days | Source: Glassnode on Twitter

As displayed in the above graph, the Bitcoin revived supply last active 1+ years has observed a spike recently. This would suggest that the LTHs have moved some of their coins.

This rise in the indicator has come as the cryptocurrency’s price has displayed a sharp rally beyond the $30,000 level. Due to this timing, it would appear likely that these transactions have been made for selli

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Author: Hououin Kyouma

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