Bitcoin long-term investors own more than 76% of all BTC for the first time
Bitcoin (BTC) is tighter than ever – whether you're a BTC value analyst or new to the market.
Recent data from on-chain analytics firm Glassnode shows that a record portion of the BTC supply is locked in long-term storage.
Bitcoin's long-term holdings have hit all-time highs
Over 76% of Bitcoin's long-term holders (LTHs) control more BTC supply than at any point in history.
While the supply increases with each block, in percentage terms, the low-term option shows that a set of Bitcoin investors are in the market.
According to Charles Edwards, founder of quantitative bitcoin and digital asset fund Capriole Investments, the achievement is a first in Bitcoin's lifetime.
On October 18, X wrote that “a record 76.2% of the Bitcoin network is closed with long-term holders.”
“Exceeding the record set in 2015. Less liquidity means the same people are playing with less coins. You do the math.
Edwards cited the effect of LTH's record breaking – coins available to other market participants are shrinking.
The accompanying Glassnode chart shows LTHs significantly increasing their BTC exposure from mid-2021, fully “hoding” in the ensuing bear market. Only in a short period of time has the percentage of supply they control decreased.
In private comments to Cointelegraph, Edwards added that the direction of the trend is clear as demand for Bitcoin itself changes.
“I don't mean that demand is the same as in 2015. For the same demand and a decrease in supply means that prices must increase – the economics of supply / demand,” he explained.
But in fact, demand has increased significantly since 2015, so it should be more pressured for this cycle. This overcrowded supply of Bitcoin has never been halved.
BTC estimates remain on the sidelines
As Cointelegraph reports, the opposite end of the spectrum from LTHs – short-term hodelers (STHs), or speculators – are also of great interest to market watchers.
Related: BTC Price Models Hint at $130K Target After 2024 Bitcoin Halving
The proven STH Group price has served as support this year, and this week, fresh data shows that the trend is in play.
The STH realized price – the price at which all STH-owned coins last moved – sits below $27,000, and BTC/USD's break above it this week is an important bullish impulse, according to analysis.
Data from Cointelegraph Markets Pro and TradingView show that Bitcoin is holding support at $28,000 after hitting a two-month high.
In August, meanwhile, historically low BTC exposure among STH entities was already on the radar.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
