cryptovibes.com
Based on research done by Glassnode on-chain analytics provider, 95% of the bitcoin that is currently changing hands was last moved within the last three months on the blockchain. Hence, the long-term holders are continuing to accumulate bitcoins as the short-term speculators keep selling.
On March 15, Glassnode released The Week On-Chain report which discovered that a mere 5% of spent outputs are over 90 days old. This report indicates that most of the bitcoins that are moving on-chain are ‘young coins.’
Other data from Glassnode has shown that addresses that have been hodling bitcoin for over three years have considerably increased their holdings in the last six to 12 months. On the other hand, the short-term holders have been taking profits since the start of 2021.
Glassnode has previously defined the “Long Term Holders,” or LTH, as wallets that have so far held their bitcoin for at least 155 days. Also, they define Short Term Holders,” or STH as the wallets that move their bitcoins on-chain within 155 days after receiving the coins.
This report alleges that LTH tends to have widespread knowledge of bitcoin, accumulating bitcoin in the bear markets and then offloading some during the bull markets. On the contrary, STH might either be newer market participants or short-term speculators that often move value between exchanges, it said.
At the current prices, Glassnode discovered that 10.85 million BTC or 58% of Bitcoin’s circulating supply are in green territory based on when they last moved on-chain. Notably, 5.3 million bitcoins are currently in profits and held by STH wallets.
The number of new participants in the #Bitcoin network is unprecedented.
Over the past weeks, we have seen a large growth of new entities. This is a strong indication that new retail investors have been entering the space.
Chart: https://t.co/3w1LwtUFZV pic.twitter.com/MXNXwimnfZ
— glassnode (@glassnode) March 15, 2021
Glassnode also said that LTHs are hodling more coins than in previous market cycles. The analytics provider also said that the number of active new entities has recently surged to new all-time highs, meaning that many new retail investors have recently entered the bitcoin space.