Data shows that the so-called Bitcoin “diamond hands” have shed 84.5k BTC from their holdings since the collapse of crypto exchange FTX.
The supply of long-term Bitcoin holders has fallen sharply recently
This is according to the latest weekly report of Glasnodesupply from long-term holders has seen one of the most significant declines this year in recent days.
The “long-term holder(LTH) group is a Bitcoin cohort that includes all those investors who have held onto their coins since at least 155 days ago, without having sold or moved them.
Statistically, the longer an investor holds their coins still, the less likely they are to sell them at any given time. Since LTHs are the group most likely to keep their coins dormant, they are the cohort least likely to be dumped during times of pressure.
The “long-term holder supply” is an indicator that measures the total amount of BTC that this group as a whole currently holds in their wallets.
When the value of this metric falls, it means that LTHs have moved their coins, possibly for selling purposes. Although an increase suggests that these holders have recently expanded their coffers.
Here is a chart showing the trend in Bitcoin LTH supply over the past year:
The value of the metric seems to have been on the decline in recent days | Source: Glassnode's The Week Onchain - Week 47, 2022
As you can see in the chart above, Bitcoin LTH supply reached a new all-time high of around 13.883 million BTC just a few weeks ago.
This spike was caused just before the crash by the fall of crypto exchange FTX started. But as soon as the price drop started, the value of the indicator also started to drop.
This means that the LTHs were dumping their coins, which contributed to the price drop. The decline in their stock has been consistent over the past two weeks, suggesting that these determined holders didn’t slow down even after the initial crash passed.
So far, the Bitcoin LTH supply has fallen by about 84.56k BTC since the ATH was set, bringing the value of the metric to 13,799 million BTC.
While this decrease is significant, it is still less than the previous three sales in May, June and July.
Nevertheless, this is still a sign of weakness from what should be the most resolute holder group in the Bitcoin market, and the sell-off also appears to be still underway, so it may even deepen.
BTC price
At the moment of writing, The price of Bitcoin floating around $15.7k, down 6% over the past week.
Looks like BTC has gone down during the past two days | Source: BTCUSD on TradingView
Featured image from Vasilis Chatzopoulos on Unsplash.com, charts from TradingView.com, Glassnode.com