Price to Follow? BTC Supply Owned By Long-Term Holders Hits New All-Time High

Bitcoin trading

Despite Bitcoin’s bearish price performance since late 2021, long-term holders (LTHs) of the leading crypto asset have proved resilient. According to on-chain analysis from the blockchain analytics platform Glassnode, the percentage of Bitcoin’s supply held by long-term holders has attained a new peak of over 76%.

Why Hold Long-Term?

A long-term holder refers to an investor who buys a cryptocurrency and holds it for several years. Investors with a long-term bullish outlook on the asset adopt this approach.

Since going live in 2009, the Bitcoin ecosystem has seen early investors who have bought the asset in large sums and held on for the long term. Although some sold off their holdings at very cheap prices, others have held on and currently sit in substantial gains as Bitcoin’s price has risen significantly over time.

LTHs Hold 76% of BTC Supply

Glassnode’s data shows that long-term holders control an impressive 76% of the asset’s circulating supply of 19.49 million BTCs. It implies that these holders’ portfolios account for 14.78 million units of bitcoin.

In July, Glassnode revealed that LTHs held 14.52 million BTCs, representing 75% of Bitcoin’s circulating supply. At the time, the analytics platform wrote:

“This suggests HODLing is the preferred market dynamic amongst mature investors.”

Notably, bull markets are accompanied by a reduction in the long-term holders who sell their holdings for profits. These coins are often bought by short-term holders who may hold for a short period and flip the asset or transition into long-term holders.

BTC Trades at $27k

Long-term holders’ resolve to hold on to the leading cryptocurrency is commendable, especially as Bitcoin’s price has significantly dropped since its all-time high of $68,000 in the November 2021 bull run.

At the time of writing, the asset traded at $27,000, representing a mild 3% increase over the last 24 hours.

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