Data shows that the supply of bitcoin has now reached an all-time high HODLing level, a sign that could be bullish for the price of the crypto.
The Bitcoin HODLed or Lost Coin Metric Has Hit a New ATH
As per the latest weekly report from glassnodeInvestors have been showing some aggressive accumulation behavior lately.
Here are some relevant pointers. The first is “HODLed or Lost Coins”, which measures the total number of coins lying dormant on the blockchain. Such coins either belong to HODLers, or are simply lost inside the wallet (hence the name of the metric).
The second indicator is “HODLer Net Position Change”, which tells us whether bitcoin volume is currently entering or exiting this dormant supply.
When the supply of HODLer increases, it means that investors have been hoarding more recently and holding a firmer hold on their coins.
Now, here is a chart that shows the trends in both these bitcoin indicators over the years:
The value of the two metrics seems to have been high in recent weeks | Source: Glassnode's The Week Onchain - Week 45, 2022
From the above graph, it is clear that the supply of Bitcoin HODLer or Lost Coin had a high value just before the 2021 bull run in full swing.
After it started, however, the indicator declined as HODLers began selling for profit. This trend of negative net position change in their supply lasted until May 2021, when a reversal occurred.
The change in net position to green shows that since then investors have been generally stronger and hoarding more coins.
As a result of this accumulation, the Bitcoin HODLer or Lost Coin metric has now reached a new all-time high.
Another way of looking at this aggressive HODLing behavior is through the “Supply Last Active < 6 Months” indicator, which measures the volume of BTC that has seen some movement over the past six months.
Looks like this metric has declined recently | Source: Glassnode's The Week Onchain - Week 45, 2022
As you can see in the chart, the percentage of bitcoin supply that has been active over the past six months is currently at all-time lows.
This means that a large part of the supply has been dormant in the recent past, further proving the extreme hodling taking place at the moment.
Naturally, this kind of investor mindset can be bullish for the price of crypto in the long term.
At the time of writing, bitcoin is priced around $19.6k, down 4% over the past week.
The value of the crypto plummets down | Source: BTCUSD on TradingView
Featured image from Quaritsch Photography on Unsplash.com, charts from TradingView.com, Glassnode.com