Long-term Bitcoin holders are getting older, signaling increased conviction among the ‘diamond hands’ community. New on-chain data from Glassnode shows a shift in coin holding patterns, with coins held by investors for 5-7 years now moving into longer holding periods. This coincides with increasing illiquid supply of Bitcoin reaching record levels.
The most patient Bitcoin holders appear to be accumulating more and more over time. This is demonstrated by the decreasing realized cap for the 5-7 year holding group, which has dropped from around $14.9 billion to just $8.5 billion in a year. While this may seem like selling pressure at first glance, it’s actually a reflection of coins maturing and shifting age groups.
Furthermore, Bitcoin’s price is currently hovering around $112,784, having increased by about 2% over the past week. This has triggered some medium-term investors to take profits.
However, the market is dominated by patient investors, with illiquid Bitcoin supply now at a record high of 14.3 million BTC, or roughly 72% of the total circulating supply. It indicates that most coins are becoming less easily traded in and out of exchanges.
For instance, the number of coins held for more than 155 days has reached an all-time high of 14.7 million BTC. This further reinforces the idea that Bitcoin is driven by long-term investors rather than short-term speculators.
While short-term traders are also playing a role, their impact is significantly less compared to institutional investors like those who operate through ETFs. The narrative around Bitcoin has been further shaped by external factors such as market activity on Binance and the continued anticipation of new ETF fund flows. The recent comments from Robert Kiyosaki regarding Bitcoin, gold, and silver as safe haven assets in light of potential social unrest, particularly in France, highlight how some investors see Bitcoin as a hedge against global uncertainty.