Data shows the recent crash hasn’t shaken the long-term holders of Bitcoin, as they have only increased their supply further.
Bitcoin Long-Term Holder Net Position Change Has Been Positive Recently
As explained by analyst Ali Martinez in a new post on X, the supply held by the BTC long-term holders has increased during the latest downturn in the cryptocurrency.
The “long-term holders” (LTHs) here refer to the Bitcoin investors who have held onto their coins for more than 155 days. This group is one of the two main divisions of the BTC market based on holding time, with the other cohort being known as the “short-term holders” (STHs).
Statistically, the longer an investor holds onto their coins, the less likely they become to sell or transfer them at any point, so the LTHs represent the stubborn side of the sector.
Whereas the STHs easily react to happenings in the market, the LTHs tend to hold tight, regardless of whether there is a rally or a crash. As Bitcoin has witnessed a plunge recently, the former cohort could be expected to have panicked once more, while the LTHs would have remained stalwart.
One way to keep track of the behavior of any cohort is through the “Net Position Change” indicator, which tells us about the net amount of BTC entering into or exiting the combined balance of the group.
Below is the chart that shows the trend in this metric for the Bitcoin LTHs over the last few months.
The value of the metric seems to have been positive in recent days | Source: @ali_charts on X
As is visible in the graph, the Bitcoin LTH Net Position Change has maintained notable positive levels through the recent bearish price action. This means that the total holdings of the group have been increasing in value.
In this latest inflows, the LTHs have seen their supply go up by 184,500 BTC, worth more than $10.8 billion at the current exchange rate. Something to keep in mind is that this recent increase doesn’t indicate that these HODLers have been buying in the present.
This is because the indicator has a 155-day delay attached since coins are only included in the cohort after they have aged up for this period. Thus, the recent increase would mean these coins were bought five months ago, and now they have matured enough to become a part of the group.
The same rule doesn’t apply to selling, though, as coins see their age instantly reset back to zero as soon as they are transferred across the blockchain, thus kicking them out of the cohort.
While the recent LTH positive Net Position Change doesn’t imply that accumulation is happening right now, it’s still naturally a bullish sign as it means HODLing crash hasn’t broken the conviction.
BTC Price
At the time of writing, Bitcoin is floating around $58,900, down almost 7% over the past week.
Looks like the price of the asset has continued its recovery during the past day | Source: BTCUSD on TradingView