A recent report by the blockchain data provider Glassnode reveals that the long-term Bitcoin holders are at a multi-year high, along with the fact that the markets are not yet saturated with taking profits.
According to a study released November 22 by analytics firm Glassnode, the long-term holders (LTH) seem to be lowering their spending while adding to existing positions.
The investigation focused on Spent Volume Age Bands (SVAB), which are used to determine the age of coins that are controlling on-chain movements on any particular day. As per Glassnode, the indicator can be used to determine the profit-taking or accumulation starting time.
Circulation of coins older than a month started in November 2020 and stopped during April and May 2021. Following concurrent surging with the Bitcoin all-time high in October at $69,000, the SVAB metric has gone down to 2.5% of daily volume. Report stated:
“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.”
The report further indicated that the short-term holders’ (STH) total supply is at a multi-year low, at less than 3 million king coins. This implies that the LTHs held amount is at a multi-year high.
Bitcoin accumulation continues despite correction
The report notes that the STH supply being low near ATHs is a relatively unique case.
As TheCoinRise covered a recent scenario during mid-November, Bitcoin long-term holders had started distributing their holding, which was a clear indication of a short-term bear arrival. As we speculated, the coin went down by 10% in the past week.
Despite not seeing any outflows for over five months, the long-term holders were holding around 13.3 million BTC, worth $754 billion at that time.
The famous Chinese journalist and Bitcoin eye-keeper Colin Wu recently tweeted, responding to the outcomes of the report. He said that the number of non-zero addresses also has peaked, which suggests that the accumulation and adoption are still going on amidst the 18% decline from its mid-October ATH.
In a previous report, Colin Wu pointed out that a single whale increased its Bitcoin holdings by 635 BTC in November. The total balance on the 3rd biggest BTC whale’s sheet is now 108,528.56 BTC.