TL;DR
- Long-term Bitcoin holders, who have retained their coins for at least 155 days, are increasing distribution pressure with 257,000 BTC spent per month. These holders now possess a record-breaking 75% of the actively circulating supply of Bitcoin.
- The amount of Bitcoin held in various wallets has seen a significant increase this month, with an additional 62,882 BTC ($1.83 billion), bringing the total to a record-breaking 14.52 million BTC. This suggests that HODLing is the preferred market dynamic amongst mature investors.
- The Grayscale Bitcoin Trust (GBTC) is dominating the market at 57%, indicating a significant shift in Bitcoin market dynamics and reflecting the growing maturity of the market and the increasing recognition of Bitcoin as a viable investment asset.
Long-term holders of Bitcoin have increased distribution pressure, with 257,000 BTC spent per month. This trend has been observed alongside the Grayscale Bitcoin Trust (GBTC) dominating the market at 57%. Bitcoin holders who have retained their coins for a minimum of 155 days, often referred to as long-term holders, now possess a record-breaking three-quarters of the cryptocurrency’s supply that is actively in circulation.
According to blockchain analytics company Glassnode, the amount of Bitcoin (BTC) held in various wallets has seen a significant increase this month, with an additional 62,882 BTC ($1.83 billion) bringing the total to a record-breaking 14.52 million BTC.
This new peak implies that holders now possess 75% of the 19.437 million BTC that are currently in circulation. The term ‘circulating supply’ is used to describe the total quantity of coins that are presently available for trading in the market.
This suggests that HODLing, a term used in the cryptocurrency community to describe the act of buying and holding onto cryptocurrencies instead of selling them, is the preferred market dynamic amongst mature investors.
The influx into wallets managed by illiquid entities, which are network participants with minimal or no spending history, continues to be robust. This trend indicates ongoing accumulation and a decrease in selling pressures in the market. This month, the quantity of coins owned by these illiquid entities has seen a significant increase, with an addition of more than 90,000 BTC.
Grayscale Bitcoin Trust Dominates with 57% Market Share
In addition to this, the Grayscale Bitcoin Trust (GBTC), a Bitcoin ETF, has been dominating the market at 57%. GBTC is an investment vehicle that enables investors to gain exposure to Bitcoin’s price movement through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping Bitcoins.
This increase in distribution pressure from long-term holders and the dominance of GBTC indicate a significant shift in the Bitcoin market dynamics. It reflects the growing maturity of the market and the increasing recognition of Bitcoin as a viable investment asset.
As the cryptocurrency market continues to evolve, these trends provide valuable insights into the behavior of long-term holders and the overall market dynamics. They highlight the increasing influence of long-term holders and institutional investors in the market, which could have significant implications for Bitcoin’s price and its role in the global financial system.
