Long-term Bitcoin (BTC) holders are in decline with a record portion of the BTC supply lying dormant for years.
Data from on-chain analytics firm Glassnode confirms that the percentage of steady supply now for at least five years is higher than ever.
2017 BTC Buyers Are Not Sellers This Year
Bitcoin recovered nearly 40% from its macro lows of $17,600 just two months ago, but for the cryptocurrency’s diamond hands, that wasn’t an event.
Those who bought BTC in 2017 or before have continued to hold their stake, and the trend is pointing to more, not less, of late.
Glassnode data shows that not only does it return to its 2017 high of $20,000, long-term holders remain committed not to sell.
On August 18, the percentage of bitcoin supply that had remained unchanged in its portfolio for at least five years reached a new all-time high of 24.351%. Almost a quarter of the 19.12 million bitcoin circulating supply has been out of the market since 2017 or before.
5 year bitcoin infographic. Source: Glassnode / Twitter
While recent months have been marked by significant sell-offs, particularly among institutional investors, scammers thus seem to be really unfazed by the current narratives.
Previously, Cointelegraph reported on Bitcoin’s HODL Waves metric showing a similar story for slightly “smaller” coins that have been accumulating for a year or more.
Meanwhile, a similar story comes from the “vitality” of Bitcoin — an account of fraudulent behavior that reached its lowest levels since the start of 2021 this week.
Related: Bitcoin Price Heads Above $23.5K After Highest EU Inflation In History
Liveliness, a term coined by Bitcoin developer Tamas Blummer, is plotted as a score between 0 and 1, which increases or decreases, depending on how much selling is taking place.
As Glassnode accurately summarizes, it is “the ratio of the sum of the days of coins destroyed and the sum of all coin days ever created.” “Days of Coin Destroyed” refers to the counter resetting when each bitcoin moves, and “days” refers to days spent in hibernation, not moving across the network.
“It is clear that the standard of living increases (and HODL decreases) during periods of time when the price of bitcoin is rising and investors accumulate HODL during periods of range-constrained prices,” Plummer explained in a dedicated introduction to the Liveliness metric published in late 2018.
Now at a 19-month low, Liveliness indicates an increased desire to operate across the Bitcoin network in general.
Bitcoin vitality chart. Source: Glassnode
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