In a year where we have seen a rapid rise in the price of Bitcoin following the accumulation of Bitcoin by institutions this was not the same about six months ago, when Bitcoin was trading for about one-fifth of its current value – $10.8K. According to a Glassnode’s recent report, Bitcoin Hodlers have restricted their spending habit.
According to the on-chain crypto data aggregator, only 36% of Bitcoin’s supply has moved in the last six months. The data shows that long-term investors are not willing to sell their holdings at the current price.
It’s normal for long term Bitcoin holders to liquidate their holdings when prices surge to higher levels, but that’s already dying down as Hodlers are reluctant to sell older coins. The report shows that the accumulation of the digital asset has picked up the pace. Hodled coins are now entering maturation as more old coins are moved out of exchanges to cold storages.
Long-term Bitcoins Enter Maturation
According to the report, coins that are between the ages 1month and 6months are starting to accumulate. Once a coin matures to about 5-6 months there is a chance they will remain immobile and hence are referred to as Long term holder (LTH) coins.
More institutions are coming to terms with the disruptive nature of the primary cryptocurrency and have started investing. Many companies are currently betting big on the digital gold, so, it is not surprising that the number of long term hodlers coins are accumulating. Today, Square’s CFO, Chief Financial Officer, Amrita Ahuja, recently revealed that the company plans to hold Bitcoin long term.
Summarily, the data from Glassnode suggests that the accumulation of the leading crypto asset has not slowed down. Also, more coins are entering maturation as their lifespan continues to grow. The data as well reveals that coins between ages 1m to 3m have risen by about 830,000 BTC while coins between ages 3m to 6m have surged by 394.5K BTC.