The following is from a recent issue of Deep Dive, Bitcoin Magazine’s premium market newsletter. To be among the first to get this insight and other Bitcoin market research delivered to your inbox, sign up now.
The long-term supply of Bitcoin holders has hit a new all-time high as the relentless accumulation of the spot market continues.
Total supply from long-term holders hit an all-time high of 12,656,092 BTC on October 19, 2020, before gradually declining over the next four months as new capital flowed into the asset.
The supply of long-term holders bottomed out at 10,903,459 BTC on March 17, 2021 and began to rise steadily before increasing sharply after the mass market liquidations in May. With Bitcoin more than 50% below its all-time high, condemned market participants began to step in and amassing Bitcoin at a feverish pace. Today, long-term owners control 12,711,385 BTC and have accumulated 460,078 BTC on a net basis in the past 30 days.
By plotting the percentage of circulating supply held by long-term and short-term owners, it can be seen that HODLers are the ones who set the price floor. During setbacks or periods of consolidation over the past decade, long-term owners benefit by accumulating more of the circulating supply while essentially setting the price floor.