Bitcoin’s Long-Term Holding Supply Hits All-Time High Amid BTC’s Rally to $37K: Glassnode

With the next Bitcoin halving event less than five months away, long-term BTC holders have remained bullish, refusing to release their holdings.

According to a weekly report by on-chain market intelligence platform Glassnode, several Bitcoin supply metrics such as HODLed, long-term holdings, and illiquid are at historic highs, with the crypto asset at “extremely tight” levels.

Investors are keeping BTC at tight levels.

Glassnode notes that the relative share of over-a-year supply is currently hovering at all-time highs for multiple age bands, despite investor sentiment surrounding impressive year-to-date price performance and excitement over the upcoming halving event.

The market intelligence platform confirmed that more than 68% of the BTC supply was last activated a year ago. In addition, 57.1% of the supply was completed two years ago, 41.1% and 29.6% were last three and five years ago.

“With long-term holding (LTH) supply, just shy of an all-time high, and short-term holding (STH) supply effectively continuing to form at all-time lows. This prudent dynamic reflects the increasing tightness in the supply of BTC, as existing holders are increasingly unwilling to part with their holdings, Glasnode said.

Exploring supply chain parameters

To confirm its findings, Glassnode examined on-chain supply metrics such as Illegal Supply and the HODLer Net Position Change metric.

The Illegal Supply metric measures the amount of BTC stored in wallets with minimal spending history. Illegal supply changes often go hand in hand with exchange withdrawals. As the measure reached a peak of 15.4 million BTC, it indicates that investors have withdrawn their money and continued to go to jail. This shows the monthly price change of the illiquid supply increasing by more than 71,000 BTC.

Glassnode found a similar pattern with the HODLer Net Position Change metric, which measures the overall maturity of the BTC supply as market players accumulate and hold their assets.

Taking the HODLer Net Position Change gauge between long and short-term holding supply shows a divergence between dormant and mobile supply as it has seen continuous inflow since June 2021 and reached a new high since July 2023.