According to recent on-chain data, long-term holders (LTHs) of Bitcoin now hold 78% of the total circulating supply, the highest value the metric has ever seen. The LTHs are often referred to as the “diamond hands” of the Bitcoin market as they tend to keep their coins dormant for longer periods.
A recent analysis suggests that there has been a growing shift towards a HODLing mentality amongst Bitcoin investors, as shown in the “percent young vs old supply” chart below. The percentage of the total Bitcoin supply held by the LTHs has only continued to rise for a couple of years now.
“The divergence between the long-term holders and the short-term holders is at its greatest right now,” says the analyst. The short-term holders (STHs) make up for the remaining 22% of the supply and include all investors who bought their coins within the last six months.
Although a brief decline was observed following the collapse of the crypto exchange FTX, it wasn’t long until holders regained focus and the supply once again started climbing up. This latest accumulation by the cohort has reached a value of 78%, making the selling pressure from most of the supply the least it has ever been.
The “percent young vs old supply” chart, a key indicator in the Bitcoin market, shows the trend in the amount of the total circulating supply held by long-term holders (LTHs) and short-term holders (STHs).
According to the analyst, such a supply shock in the market can be bullish for the price of Bitcoin in the long term. “It means that selling pressure from most of the supply should be the least ever now, as it is likely to remain dormant for extended periods with the LTHs,” he adds.
In conclusion, the data shows that the HODLing mentality is becoming increasingly popular among Bitcoin investors, with long-term holders now holding the majority of the supply. This could potentially lead to a bullish market for Bitcoin in the future.