Data shows the Bitcoin diamond hands have continued to sit down tight recently as almost a 3rd of the availability hasn’t been moved in five years.
Bitcoin Has A Notable Part Of Its Supply Dormant Since Over Five Years
In a latest post on X, the market intelligence platform IntoTheBlock has discussed about how essentially the most dormant BTC supply has been looking like recently. The availability in query is the one made up of the Unspent Transaction Outputs (UTXOs) which have aged past the five-year mark.
In other words, this supply includes the coins of the investors who’ve been holding onto them since greater than five years ago, without having sold or moved them from their wallets.
The investors who’ve coins aged greater than 155 days are popularly generally known as the “long-term holders” (LTHs), so this five-year old supply would represent the holdings of the especially aged LTHs.
Statistically, the longer an investor holds onto their coins, the less likely they change into to sell said coins at any point. As such, the LTHs are considered to be the resolute side of the market. The LTHs dormant since greater than five years ago would then, in fact, be the diamond hands amongst diamond hands.
Something to notice, though, is the proven fact that not all of this supply would actually be a sign of HODLing. The explanation behind this is straightforward: the older the tokens change into, the more likely they get to have change into lost, whether by simply having their existence forgotten or by having their keys change into inaccessible.
Thus, as the availability in query is over 5+ years old, a component of it’s probable to in truth never make it back into circulation. That said, the remaining of it will have attained the age through sheer conviction.
Below is a chart that shows the trend in the proportion of the Bitcoin supply that’s on this age bracket over the history of the cryptocurrency.
Looks just like the value of the metric has been happening in recent days | Source: IntoTheBlock on X
As is visible within the above graph, the Bitcoin 5+ 12 months LTH supply registered a decrease earlier within the 12 months as some old investors woke up to gather their rally profits, but this decline was only slight, and since then, the indicator has been moving sideways.
At present, the metric’s value stands at 30.7%, which implies almost a 3rd of the cryptocurrency’s entire supply in circulation hasn’t been moved in greater than five years.
For perspective, the five-year cutoff puts the earliest possible buying point for these coins back in August 2019. Thus, these investors have survived no less than the COVID-19 crash, the 2021 bull market, the 2022 bear market, and now, the rally that first began in 2023.
Given this resilience, it’s unlikely most of those investors would sell their Bitcoin under anything, but very special circumstances.
BTC Price
Bitcoin has seen a plunge of virtually 4% during the last 24 hours, which has taken its price to $58,100.
The worth of the coin appears to have plunged recently | Source: BTCUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com