Long-Term Holders Control Record 76.2% of Bitcoin Supply, Predicts Potential Price Rise
Summary:
The latest data from Glassnode reveals an unprecedented 76.2% of Bitcoin's supply is held by long-term holders (LTHs), exceeding the record set in 2015. Charles Edwards, founder of Capriole Investments, stated that despite the rise and fall of demand, the overall trend indicates a significant increase. The short-term holders (STHs) group's realized price is predicted to influence a bullish momentum if Bitcoin prices surpass it. As of now, Bitcoin has managed to maintain a $28,000 support after reaching two-month highs.
Bitcoin is experiencing a shortage like never before, especially for speculators and newcomers to the digital currency market. According to latest information from Glassnode, an on-chain analysis company, a record percentage of Bitcoin supply is now lodged in long-term storage. Bitcoin's long-term holders (LTHs) currently have more control over the Bitcoin supply, at over 76%, than any time in the digital currency's history. Despite fresh supply generated with each block, the percentage market presence of Bitcoin's patient investor group has never been more strong.
Charles Edwards, the founder of Capriole Investments, a quantitative Bitcoin and digital investment fund, highlighted this unprecedented milestone in Bitcoin's history. He outlined that 76.2% of Bitcoin stock is claimed by long-term investors, which is not only a record but also surpasses the previous high set in 2015. He suggested that the less liquid supply indicates the same investors are bidding on fewer coins.
Referring to the charts produced by Glassnode, the trend of LTHs significantly boosting their Bitcoin holdings from mid-2021 onwards is evident. However, the LTHs held strong, even amidst the subsequent bear market. Edwards privately commented to Cointelegraph that despite variable demand for Bitcoin, the direction of the trend is apparent.
He clarified, explaining that a given constant demand coupled with decreased supply would naturally result in a hike in prices, as per basic supply/demand economics. Intriguingly, he suggested that demand had actually risen significantly since 2015 which should apply additional upward pressure on Bitcoin prices in this cycle. He emphasized that the Bitcoin supply has never been so constricted prior to a Bitcoin halving.
In contrast, short-term holders or speculators of Bitcoin, are also attracting interest from the market experts. The STH realized price, which is the cost at which the last STH-owned coins transitioned, currently stands just under $27,000. Analysis suggests that the Bitcoin price exceeding this this week could infuse important bullish momentum.
Latest data reveal that Bitcoin was able to maintain a $28,000 support after reaching two-month highs. In August, the noticeably low Bitcoin uptake among STH entities was flagged. However, please note, this piece does not include investment advice or recommendations. All investment and trading actions entail risk and potential investors should carry out their own research before making any decisions.
Published At
10/19/2023 10:39:01 AM
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