Irrespective of the massive losses in major cryptocurrencies over the recent month, more bitcoiners are still holding onto their assets. With more hodlers comes less selling pressure on bitcoin, which could eventually produce the price bottom, coupled with other important market factors.
Bitcoin supply held by LTHs reaches ATH
Per Glassnode data, the total supply of bitcoin owned by long-term holders (LTHs) has reached a new record level of 13.62 million BTC. This represents more than 71% of all bitcoins currently in circulation – about 19.15 million BTC, according to Coinmarketcap.
The LTH data suggest that such a volume of bitcoin has not been moved by the holders for the past 155 days. The on-chain analytic platform reckons this supply held by long-term holders is statistically also “the least likely to be spent during market volatility.”
The increase in LTH supply is positive for bitcoin’s price, which has dropped by more than 56% since the beginning of the year. However, the increase is not entirely surprising considering the fact that the majority of bitcoin supply is presently underwater, i.e., at unrealized losses.
Perhaps, bitcoin investors are hodling with hopes to resume selling when the price improves. Notwithstanding, the rising LTH supply is bullish as it suggests less pressure on the largest crypto to the downside, at least in the meantime.
Investors are becoming skeptical about buying bitcoin and other digital assets at the dip. Part of the reason is the current market condition, which is spreading fear and uncertainty on stocks and risk assets like bitcoin. It appears crypto investors are more inclined to start accumulating when the bottom is confirmed.
But according to on-chain expert Willy Woo, the bottom is not happening yet. Woo’s opinion of the market bottom was based on the volume of bitcoin underwater. He explained that the supply of bitcoin at an unrealized loss reached 61%, 64%, and 57% in the past circles before the formation of the market bottom.
At the moment, unrealized losses in bitcoin are around 52%.