Long-term holders of bitcoin (BTC) are hunkering down as a record share of BTC supply has been dormant for years.
Data from chain analysis firm Glassnode confirms that the percentage of supply tied for at least five years is higher than ever.
BTC 2017 buyers are not this year’s sellers
Bitcoin has recovered almost 40% from its macro low of $17,600 just two months ago, but for long-term holders of the cryptocurrency, this was not an event.
Those who bought BTC in 2017 or earlier continue to place their bets, and the trend shows an increase, not a decrease, on the net recently.
Data from Glassnode shows that long-term holders are not happy with a reversal above the 2017 highs ($20,000), but are determined not to sell.
On August 18, the percentage of the BTC supply that remained safe in a wallet for at least five years reached a new all-time high of 24.351%. So almost a quarter of the 19.12 million BTC supply in circulation is no longer on the market since 2017 or earlier.
Although the last few months have seen significant selling, especially among institutional investors, it would therefore appear that the current events are not affecting these owners very much.
Previously, Cointelegraph reported that Bitcoin’s HODL Waves metric showed a similar pattern for slightly “younger” coins that have been stuck for a year or more.
He’s not so alive after all
Bitcoin’s “vitality” metric — a hodler’s behavior calculation that hit its lowest level this week since early 2021 — is similar.
Also Read: Bitcoin Price Surpasses $23,500 After Highest Inflation In EU History
Vitality, a term coined by Bitcoin developer Tamas Blummer, is indicated by a score between 0 and 1, which increases or decreases, depending on the amount of hodler sales that occur.
As summarized by Glassnode, it is the “ratio between the sum of Coin Days Destroyed (CDD) and the sum of all Coin Days Ever Created”. The concept of days of deleted coins refers to the counter being reset to zero as each bitcoin moves, with “days” referring to days spent idle, not moving on the network.
“Vitality (and HODL decreases) obviously increases during periods of bitcoin price increases and investors pile up for HODL during price range periods,” Blummer explained in an introduction.
Now at a 19-month low, the Vitality metric shows a growing desire for hodl across the Bitcoin network at large.
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