Blockchain analytic company Glassnode has recently found that most of the Bitcoin has been hodled for at least three months, which is a behavior that mirrors previous Bitcoin market bottoms.
It has been estimated that over 80% of the total USD-denominated wealth is used for Bitcoin investment. That stash of Bitcoin has not been moved for a minimum of three months. The firm believes that this is an indication that the “majority of BTC coin supply is dormant” and that hodlers are becoming less and less willing to spend at lower prices.
Over 80% of the total USD denominated wealth invested in #Bitcoin has been HODLed for at least 3-months.
This signifies that the majority of the $BTC coin supply is dormant, and HODLers are increasingly unwilling to spend at lower prices.
Live Chart: https://t.co/lRtBe69Phz pic.twitter.com/NIQzwkXQDv
— glassnode (@glassnode) July 16, 2022
The Glassnode chart has shown that there were similar Bitcoin hodling activities during the end of the bear markets back in 2012, 2015, and 2018.
In early July, the analysts at Glassnode noted that nearly all of the “tourists” are fleeing the Bitcoin market and added that the activity on the network is at a same level as the deepest part of the bear market of 2018 and 2019. On the other hand, they have also noted that shrimps (those who hold less than 1 BTC) and whales (those who hold 1,000 to 5,000 BTC) were “increasing meaningfully.”
The analytic firm also remarked that the number of active addresses and entities has been decreasing since November 2021 — which insinuates that new and existing investors are not interacting with the network.
According to Coinbase’s head of institutional research David Duong, his report titled “The Elusive Bottom” said that short-term speculators are mainly responsible for the recent selling of BTC and that long-term BTC holders “have not been selling into the market weakness.”
