The ever-increasing rate of long-term Bitcoin holders has reached its apogee, a recent Glassnode analyst report reveals. The analysis indicates that as much as 68% of the current supply of BTC remains untouched for more than a year.
Bitcoin’s accumulation dynamics continues to grow
The amount of this cryptocurrency, held by investors with a long-term perspective, has recently reached unprecedented records, due to a series of events heralding a dynamic increase in the value of Bitcoin (BTC). This is evidenced by the latest data presented by Glassnode.
According to the survey, investors are reluctant to dispose of their holdings, and experts note an “impressive increase in the rate of accumulation.”
“The current level of Bitcoin supply is quite tight, with several important indicators, such as illiquid supply, HODLed coins held in portfolios and the supply of long-term holders reaching historic highs.”
Bitcoin’s highest-ever level not to budge
Statistics show that the percentage of Bitcoin in circulation that has not moved for more than a year remains at its highest level ever. Other areas are also seeing record levels.
As much as 68% of the BTC supply in circulation has not experienced any change for more than a year. As for assets that have not changed their holders for more than five years, the share reaches almost 30% of the total volume of the leading cryptocurrency.
“The illiquid supply index, which measures the amount of assets held in wallets with little transaction history, has also reached historic highs and now stands at 15.4 million Bitcoins.”
Glassnode also points to the HODLer position volatility index, which has seen steady inflows since June 2021. It clearly increased after the June 2022 sell-off, when the famous collapse of 3 Arrows Capital, as well as the LUNA crypto project, was recorded. The report reads:
“This indicator shows the aggregate maturation of BTC supply. Investors are accumulating and retaining their coins, reducing the pace of spending and transactions.”
BTC supply increasingly constrained
Finally, the experts conclude, “Bitcoin supply is now historically constrained, and numerous indicators describing coin inactivity have reached multi-year or even historical peaks.” The report concludes:
“This suggests that the amount of Bitcoin available is extremely limited, which is particularly impressive given the rapid price increases since the beginning of the year. The future promises to be exciting for Bitcoin investors, especially with the expected halving in April and the positive outlook around Bitcoin ETFs in the United States.”