Connect with us
Active Currencies 13836
Market Cap $2,406,668,857,200.71
Bitcoin Share 52.51%
24h Market Cap Change $-6.12

Bitcoin: HODLers remain HODLing – is an uptrend on the way?

2min Read

Long-term BTC investors have been accumulating and transferring coins to self-custody, accounting for nearly 75% of the total supply.

Bitcoin: HODLers remain HODLing - is an uptrend on the way?

Share this article

  • The total BTC balance across all exchanges equated to just 11.7% of the total circulating supply.
  • The amount of BTC available for purchase hit all-time lows.

Despite the gains made by Bitcoin [BTC] in its recent rally, most long-term investors continued to take coins out of exchanges in favor of self-custody. According to a popular Twitter user who tracks crypto markets, BTC’s supply on exchanges hit a 5-year low on 30 June, demonstrating investors’ tendency to HODL.


Is your portfolio green? Check out the Bitcoin Profit Calculator


Liquid supply shrinks

As of 30 June, the total BTC balance across all exchanges was 2.2 million, equating to just 11.7% of the total circulating supply. Such balances were last seen during the historic bull market of 2017. But unlike now, they were in a steady uptrend back then.

Source: Glassnode

On expected lines, the drop in BTC’s liquid supply was driven by seasoned investors. Long-term investors have been consistently accumulating and transferring coins to self-custody, accounting for nearly 75% of the total supply.

On the other hand, the supply held by short-term investors or the active traders has declined considerably over the past two years.

Source: Glassnode

What are the factors driving this?

A myriad of reasons could explain this behavior. Concerns regarding the safety of funds in centralized exchanges, compounded by the collapse of big entities like FTX, have been a driving force. Regulatory clampdowns on other behemoths like Coinbase and Binance have made matters worse.

However, it’s not just the negativity which was behind the HODLing trend. Over the years, BTC has shown resilience amidst market implosions and regulatory hostilities.

Because of this, it was increasingly viewed as a ‘Store of Value’ rather than a speculative asset in intraday trading. Growing interest shown by TradFi giants has also heightened its long-term growth potential.

A long-term bullish signal?

Will Clements, co-founder of a crypto research firm, took to Twitter to explain what this ongoing trend could mean for BTC prices in the near-term.

As the amount of BTC available for purchase reached a nadir, he anticipated that future buyers would have to pay significantly higher prices to persuade long-term holders to sell their holdings.

Source: Glassnode


How much are 1,10,100 BTCs worth today?


Meanwhile, a report by The Wall Street Journal disclosed that the recent applications to launch a spot Bitcoin ETF were deemed inadequate by the U.S. Securities and Exchange Commission.

As of this writing, BTC recovered to $30,433.55, but was still down 0.81%, as per CoinMarketCap.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.