Bitcoin HODLers insensitive to recent volatility: Glassnode

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On-chain data from Glassnode shows that recent volatility has not been enough to move Bitcoin’s diamond hands.

Long-term Bitcoin holders continue to increase their holdings

According to data from on-chain analytics firm Glassnode, HODLing remained the top momentum among long-term holders. The Long-Term Holders (LTH) group is a cohort of Bitcoin that includes all investors who have held their coins for at least 155 days.

An indicator called Supply Last Active Age Bands can break down the total amount of supply each age band in the market currently holds. Coins are divided into these age brackets based on the total time they have been idle on the blockchain.

Using this metric, not only the supply of LTHs in general can be tracked, but the behavior of different segments of this group can also be studied.

In the context of the current discussion, relevant parts of LTHs are those that have been carrying parts for at least one year. To be more precise, the age groups considered here are the groups 1+ years old, 2+ years old, 3+ years old, 4+ years old and 5+ years old.

Here is a chart that shows the supply trend of these LTHs over the entire history of cryptocurrency:

The values ​​of these metrics have only increased in recent days | Source: Glassnode on Twitter

Note that the age ranges here have no upper limits. This means that younger age groups also include intakes from age groups older than them. For example, the 1+ age bracket includes the combined data of all these other brackets as the youngest.

Now, it can be seen from the chart above that all of these bitcoin age bands have risen in recent months, implying that investors in the market are holding coins long enough for them to mature in those bands.

BTC has seen quite high volatility recently, but these investors still haven’t shown any significant changes in their supply. This suggests that HODLing remains the main dynamic among long-term investors, implying that greater volatility in price action is needed to entice old-timers to spend, says Glassnode.

Currently, the supply of the 1+ years cohort represents 67.5% of the entire supply of BTC in circulation, a very large figure. The percentages naturally drop with each subsequent group, as their bid cannot be higher than the group above them, as explained earlier.

Generally, the longer an investor holds their coins, the less likely they are to sell at any given time. This is partly because the older the coins, the more likely they are to have been permanently lost (because the keys to their wallets are no longer accessible).

From the graph, it is visible that the older age groups generally observed lesser fluctuations compared to the groups younger than them. This interesting trend shows the aforementioned statistical fact in action.

BTC price

As of this writing, Bitcoin is trading around $28,000, up 2% in the past week.

Looks like the value of the asset has plunged in the last two days | Source: BTCUSD on TradingView

Featured image by Andr François McKenzie on Unsplash.com, charts by TradingView.com, Glassnode.com

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