The data shows that the Bitcoin supply has dropped by 150k BTC in the long-term Bitcoin holders since the LUNA collapse.
Over the last few months, Bitcoin long-term holders have seen a significant drop in bitcoin prices
The latest Weekly Report from Glassnode shows that the BTC LTHs experienced a steady decline of 150k BTC after the May crash.
The “long-term holder” (or LTH in brief) group is the Bitcoin cohort that includes all those investors who have been holding onto their coins since at least 155 days ago, without selling or moving them. Holders who sell before this threshold are known as short-term holders (STH).
LTHs are generally the most resolute investors in the market and thus large selling from them doesn’t happen too often. The chances of selling are lower the longer a holder holds their coins (which is the opposite of the LTH’s age).
Below is a chart showing the trends in total Bitcoin supply by LTHs over the last year.
The value of the Metric seems to have trended downwards in recent weeks | Source: Glassnode's The Week Onchain - Week 33, 2022
You can see that LTHs have had a steady increase in Bitcoin supply since November 2013.
The indicator set a high during the month of May of this year, but since then the metric’s value has been on a steady decline.
It seems that the LUNA/UST collapse was the catalyst for this market-wide sell-off in LTHs.
According to the report, the current 155-day threshold for long-term holders is March. This was when Bitcoin’s first rally of $46k has been seen since its decline from its all-time high.
While the latest selling from the LTHs amounts to just 150k BTC, which is quite small compared to their total supply of around 13.4 million BTC, the report explains that the LTH reserve doesn’t have to significantly decrease for the cohort to go through a capitulation event.
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The LTH supply was not affected by past capitulations. Investors who were weakest have been eliminated and strong accumulation filled in for them.
BTC price
At the time of writing, Bitcoin’s price floats around $23.4k, down 4% in the past week.
It seems like crypto's value has fallen in recent days. Source: TradingView, BTCUSD.| Source: BTCUSD on TradingView
Dmitry Demidko's featured image on Unsplash.com. Charts by TradingView.com. Glassnode.com.