Data from Glassnode shows that bitcoin’s long-term holder capitulation has not yet reached the scale that would result in widespread loss of conviction.
Bitcoin Long-Term Holder Supply Has Dropped 61.5k BTC Since November 6th
As per the latest weekly report from glassnodeThe BTC long-term holder supply has seen a significant decrease recently.
“Long Term Holders” (LTH) form a group that includes all bitcoin investors who have been holding their coins for at least 155 days.
Holders belonging to this group are statistically least likely to sell at any given point, so their movements can have a noticeable effect for the market.
The “long-term holder supply” is an indicator that measures the total number of coins currently stored in the wallets of these determined investors.
Changes in the value of this metric can tell us whether LTH is accumulating or selling at the moment.
Now, here is a chart that shows the trend in bitcoin LTH supply over the years:
Looks like the value of the metric has decreased in the last few days | Source: Glassnode's The Week Onchain - Week 46, 2022
As you can see in the graph above, the Bitcoin LTH supply had been in a steady uptrend for several months prior to last week, reaching new all-time highs.
This means that as the bear market progressed, the market was constantly hoarding crypto.
However, since November 6th (when the crash triggered by the FTX collapse began), the indicator has declined sharply, indicating that LTH has participated in some selling.
Overall, there has been a drop of around 61.5k BTC exiting the LTH wallet in this period so far.
The chart also includes data for the 7-day change in this bitcoin indicator, and it looks like the metric is currently holding a downside price of 48.1k.
This value is not negligible, but as is evident from the graph, this red spike is not at the level seen during the previous selloff.
The report added that this could mean that there has yet to be a widespread loss of conviction among the most determined holders of bitcoin.
Nonetheless, it remains to be seen where the metric goes from here. “Should this develop into a sustained LTH-supply decline, however, it may suggest otherwise,” warns Glassnode.
At the time of writing, bitcoin is priced around $16.8k, down 15% over the past week. In the past month, the crypto has lost 13% in value.
The value of the crypto seems to still be trading sideways | Source: BTCUSD on TradingView
Featured image from Daniel Dan on Unsplash.com, charts from TradingView.com, Glassnode.com