Long-term Bitcoin holders (LTHs), often referred to as “Hodlers,” are showing strong conviction in their Bitcoin positions, with data from crypto analytics firm “Into the Block” revealing that they now hold approximately 13.44 million Bitcoins. This represents a significant portion of the total circulating supply, accounting for around 69% of the 19.49 million BTC currently in circulation. LTHs are individuals who have held their Bitcoin for over 155 days.
Historically, long-term holders have played a crucial role in sustaining Bitcoin prices during bear markets and taking profits during bull runs, helping to provide stability to the cryptocurrency market.
On the other hand, short-term holders (STHs), those who have held Bitcoin for 155 days or less, are facing challenges. Data from Glassnode indicates that STHs now hold a smaller portion of the available Bitcoin supply than they have in over a decade. Furthermore, 97.5% of short-term holders are currently facing unrealized losses, which has resulted in a decrease in their influence in the market.
This shift in Bitcoin ownership dynamics could have a significant impact on the cryptocurrency’s price trajectory, especially in the face of short-term market volatility. It suggests that long-term holders are committed to their positions, which can provide stability during turbulent times.