Remember 2020? The data shows that long-term holders demand higher prices to sell BTC

Bitcoin has attracted a new generation of hodlers over the past three years as resilient investors hold onto their assets.

Data from the widely used HODL Waves metric shows that individuals who bought Bitcoin in late 2020 chose to keep their coins without selling them.

Table of Contents

Toggle

Long-term holders continue to accumulate Bitcoin.

Although the 2023 bull run has boosted Bitcoin's price to a more than one-year high, long-term Bitcoin holders (LTHs) are showing no inclination to reduce their exposure. The positive momentum in Bitcoin's price is due, in part, to the anticipation of the first US-listed Bitcoin Exchange Traded Fund (ETF).

The HODL Waves metric, which ranks Bitcoin's supply based on the time since each coin last moved, has seen a significant increase over the past year in a specific age group.

Since the bear market bottomed in late 2022, two to three years of stagnant coins have significantly expanded their total supply. 16%

That indicates that individuals who bought Bitcoin between December 2020 and December 2021 resisted the temptation to make massive gains, demonstrating their determination to hold on to their investments.

HODL Waves, the successful cap that underpins the value of coin sets of equal weight, shows the highest percentage gain of the total guaranteed cap for a two- to three-year-old coin.

According to data from the on-chain analysis firm Glassnode, as of December 6, the figure for Bitcoin controlled by LTHs stood at 14.92 million BTC, slightly below the all-time high of 14.95 million BTC (supply 76.3%). November 28.

Short-term owners are selling.

Despite resistance among long-term holders, Bitcoin has seen an impressive year-to-date increase of 165%, according to data from Coingecko, showing the overall strength and positive performance of the cryptocurrency.

Bitcoin firm long-term holders (LTHs) as opposed to short-term holders (STH) or speculators have increased their profit-taking activities over the past week. Bitcoin's surge above $40,000 triggered an immediate selling reaction, resulting in the loss of $4.5 billion worth of BTC within days.

Despite this strong sell-off, LTHs have had some impact on markets where they already account for a larger share of supply than before.