The data shows that the Bitcoin supply is at an all-time high in HODLing, which could indicate that the cryptocurrency’s price may be rising.
Bitcoin Lost Coins or HODL has Hit A New Ath
Glassnode’s latest Weekly Report shows that investors are showing aggressive accumulation behaviors in recent weeks.
These indicators are relevant in a few ways. The first is the “HODLed or Lost Coins,” which measures the total number of coins that have been sitting dormant on the blockchain. These coins can be either belonging to the HODLers or simply in wallets that were lost, hence the name of this metric.
The other indicator is the “HODLer Net Position Change,” which tells us the amount of Bitcoin that is entering or exiting this dormant supply right now.
If the HODLer supplies rise, that means investors are accumulating more recently and holding onto their coins.
Here’s a chart showing the trends in these two Bitcoin indicators over time:
Source: Glassnode's The Week Onchain - Week 45, 2022| Source: Glassnode's The Week Onchain - Week 45, 2022
From the above graph, it’s apparent that the Bitcoin HODLer or Lost Coins supply had a high value just before the 2021 bull run hit in full swing.
However, it declined after the initial spike as HODLers started to make a profit by selling. This negative net position change was evident until May 2021. Then, it began to reverse.
Since then, the green net change has shown that investors have generally held strong and been accumulating more coins.
The Bitcoin HODLer (or Lost Coins) metric now stands at an all-time high due to this accumulation.
Another way to see this aggressive HODLing behavior is through the “Supply Last Active < 6 Months” indicator, which measures the amount of BTC that has seen some movement within the last six months.
It seems like this metric is declining recently. Source: Glassnode’s The Week Onchain Week 45, 2022| Source: Glassnode's The Week Onchain - Week 45, 2022
The chart shows that the historical lowest percentage of Bitcoin supply active in six months has been shown.
It means that a large portion of the current supply is now dormant, which further demonstrates the extreme HODLing currently taking place.
This type of investor mindset can, naturally, be positive for crypto’s long-term price.
At the time of writing, Bitcoin’s price floats around $19.6k, down 4% in the last week.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Quaritsch Photography featured image on Unsplash.com. Charts by TradingView.com. Glassnode.com.