On-chain analysis indicates that Bitcoin long-term holders have experienced a significant net increase in their supply over the past month.
Bitcoin Long-Term Holder Supply Is Rapidly Increasing
As detailed by CryptoQuant community manager Maartunn in a recent post on X, the supply of BTC has increasingly matured into the long-term holder (LTH) category. The term “long-term holders” refers to Bitcoin investors who have held their coins for more than 155 days.
LTHs form one of the two primary segments of the BTC market based on holding duration, with the other group called “short-term holders” (STHs). While STHs typically represent the more transient aspect of the market, LTHs are characterized by their steadfastness.
Many indicators exist to analyze the activities of these two groups, one of which is the LTH Net Position Change. This metric, as its name suggests, tracks the net alterations in the total supply held by HODLers. A positive value indicates that the LTH supply is increasing, whereas a negative value suggests that coins are being withdrawn from this group.
Here’s a chart showing the historical trend of the 30-day Bitcoin LTH Net Position Change:
The metric has recently experienced a significant positive surge | Source: @JA_Maartun on X
The chart above illustrates that the 30-day Bitcoin LTH Net Position Change plunged into negative territory as the BTC price soared to a new all-time high (ATH) in the first quarter. This indicates that even long-term investors, who rarely sell, were tempted by potential profits during the rally. This profit-taking behavior among steadfast holders persisted even after the peak.
However, in recent months, the metric has shown a positive shift, with a particularly notable spike observed in the last month. Over the past thirty days, the LTH supply has increased by 959,000 BTC, which is quite substantial. It’s important to note that this uptick in the Net Position Change does not imply that the LTHs have made new purchases; rather, it indicates that coins initially purchased over 155 days ago have now aged sufficiently to qualify for this cohort.
While HODLer accumulation involves this 155-day delay, the same does not apply to selling. Coins are removed from the LTH supply the moment they are transacted on the network, meaning that sales are immediately reflected in the indicator.
Whether or not these diamond hands have actively participated in recent Bitcoin ‘buying’, the fact that coins are maturing in the network remains a positive indication, suggesting that investors are committed to HODLing at this time.
BTC Price
Bitcoin has experienced another 3% decline in the last 24 hours, now sitting at around $60,800.
The price of the coin has been in a downward trend recently | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
