Data shows long-term supply from Bitcoin holders has risen again and set a new all-time high, suggesting that belief may be returning to the market.
Long-term Bitcoin holder supply is recovering from FTX panic selling
This is according to the latest weekly report of Glasnode, long-term holders of BTC now hold about 72.3% of the total circulating supply. The “long-term holder(LTH) group is one of the two main cohorts in the Bitcoin market and includes all investors who held their coins for at least 155 days, without having moved or sold them from their wallets.
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“Short term holders(STHs) are the other end of the market. Statistically, the longer investors hold on to their coins, the less likely they are to sell at any point. Therefore, LTHs are the more determined group of the two and are sometimes referred to as the “diamond hands” of the market.
The “LTH Supply” is an indicator that measures the total amount of BTC these HODLers as a whole currently hold in their wallets. Here’s a chart that shows the trend in this metric over the past few years:
Looks like the value of this metric has seen an increase in recent days | Source: Glassnode's The Week Onchain - Week 50, 2022
As the chart above shows, Bitcoin LTHs showed a strong accumulation trend between July and early November, pushing their supply to a new high. However, the crash due to the collapse of the crypto exchange FTX completely reversed the trend, as these holders instead quickly began to shed their holdings.
This drop in the indicator suggests that even these determined holders panicked from the crash and sold their coins. But in recent weeks, the tide seems to be turning. As the market has traded sideways, LTH supply has seen a steady increase, implying that these investors are accumulating again.
The statistic has now completely reversed the withdrawal due to the FTX debacle, reaching a new all-time high of 13.9 million BTC, which is equivalent to about 72.3% of the total circulating supply.
The 155-day threshold would bring back the source of this new series of accumulation in June and July of this year, when the deleveraging due to the collapse of 3AC took place.
This new surge in LTH supply means that belief is returning among these Bitcoin HODLers, something that has historically been bullish for the price in the long run.
BTC seems to have bounced back from yesterday's fall | Source: BTCUSD on TradingView
At the time of writing, Bitcoin price is trading around $17.2k, up 1% over the past week.
