Despite the latest Bitcoin price tank below $60k, long-term BTC holders are now at multi-year record highs according to major crypto analytics website Glassnode. This is a relative anomaly in the middle of a big bull run like we are having in 2021 and is likely to add further pressure on the digital currency’s supply, possibly resulting in a considerable price increase. Currently, Bitcoin is on a short-term price dump, hovering around $57k at press time.
HODL (Hold On for Dear Life) has been around since the first major price following the 2013 bull run. It has become a mainstay in the crypto world and usually the sector looks towards the HODLer warriors to help stop a price dump. These accounts are generally associated with crypto ideologists who refuse to sell out even when prices reach extreme high or extreme low levels.
Despite the great ups and downs of earlier this year, Bitcoin HODLers continue to remain unfazed and have added to their overall stash while spending even less and less with time. This was analyzed by Glassnode that used a metric called Spent Volume Age Bands (SVAB). This is used to identify the age of Bitcoins dominating the cash flow around the blockchain network’s ecosystem.
While the SVAB levels started rising as soon as Bitcoin reached new all time highs in October, they began to pull back as soon as Bitcoin started tanking. This shows that the long-term HODLers are reducing their spending further and holding on to their Bitcoin reserves in a big manner. Now the SVAB index has fall further, around 2.5% to be precise.
According to Glassnode:
“This can reasonably be interpreted as longer term holders reducing their spending, and thus are more likely to be adding to positions, not exiting them.”
Currently, long-term HODLers are sitting on around 13.3 million BTC or a whopping $750 billion+ in dollar value. This is the highest they have ever been despite the recent price increase and subsequent pullback.
The analytics giant also stated that Short Term Holders (STH) are at a multi-year low as well. This combination is very unusual for the crypto sector as usually when the index is hovering near all-time highs, STH figures shoot up and the long-term HODLers sell some of their stash, thus bringing more olders crypto into circulation.
However, this hasn’t happened considerably in the market right now in the 2021 bull run and now in the middle of the proceedings, we are seeing massive HODL figures and low STH levels. All of this points to a situation where the supply of crypto in the market is likely to get choked further and result in another massive price increase for the digital currency.
Image Source: pixabay.com
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