Although more of Bitcoin’s total supply has been “idle” for over a year, recent data has revealed impressive growth in the number of investors holding on to their BTC during the rally.
Bitcoin HODLing Yawns for Growth with Less Supply
On Wednesday, November 15, a crypto analyst known as Root used his official handle X (formerly Twitter) to share valuable data regarding Bitcoin. An annual chart of BTC supply also accompanied the analyst’s X post.
According to the analyst, a significant portion of the total BTC supply has been inactive for over a year. Additionally, inactive supply recently reached an all-time high (ATH) of 69%. The analyst said:
A record 69% of #Bitcoin supply has not been active for over a year. » Root said.
This supply for a year or more is only part of a larger group known as long-term holders (LTH). One of the two main groups of Bitcoin investors includes these LTHs, while the other is known as short-term holders (STH).
Investors holding coins for more than five to six months are classified as long-term holders. Meanwhile, those who do not hold coins during this given period are classified as short-term holders.
Additionally, even among LTHs, those past the one-year mark would be considered “reliable gems.” However, this variety currently makes up the majority of the asset’s supply. This figure also appears to have increased significantly in recent times, as the chart indicates.
According to statistics, holders are less likely to change their coins at any time the longer they remain inactive. For this reason, LTHs tend to be the most dedicated segment of the market during periods of Bitcoin up or down.
Double Top Pattern Resurfaces, Taking Crypto Towards a Downtrend
BTC recently formed a double top pattern near the $38,000 level, causing the token to decline. The price has since fallen below the 100-hour simple moving average and the $36,500 mark.
However, it appears that the bulls emerged at the $36,500 mark, which allowed the token to hold steady between $36,000 and $36,500. Following the formation of a low at $36,517, the price is currently correcting losses.
So far, there is no evidence that increased Bitcoin HODLing has led to BTC price growth. Nonetheless, this recent development sparks potential for crypto assets over time if this continues.
Currently, the price of BTC is $36,422 at the time of writing, indicating a decline of 2.94% in the last 24 hours. The asset’s 24-hour trading volume also saw an 8% decline, valued at $26,113,638,790, according to CoinMarketCap.
Featured image by iShock, chart by Tradingview.com