Glassnode said the long-term Bitcoin (BTC) holders are adding to their positions and have actually reduced their BTC spending despite an 18% decline from ATH.
Glassnode has said in its latest (Nov 22) weekly on-chain report that the long-term Bitcoin (BTC) holders are continuing to add to their positions and have actually reduced their BTC spending.
The leading and trusted blockchain data and intelligence provider has used Spent Volume Age Bands (SVAB) to determine the age of BTC tokens that are dominating the on-chain flows on any given day. Glassnode says this metric helps in the identification of the beginning of BTC accumulation or profit-taking.
Their report says that the spending of BTC coins older than one month started in November 2020 and ended in April-May 2021. The Spent Volume Age Bands metric has now dropped to 2.5% of the daily volume, according to Glassnode, since spiking concurrently with the ATH (all-time high) of Bitcoin in October 2021.
Glassnode's most recent weekly report stated
"This can reasonably be interpreted as longer term holders reducing their spending, and thus they are more likely to be adding to positions, not exiting them."
They also pointed out that the total supply of the Bitcoin (BTC) tokens held by the short-term holders (STH) is less than 3 million BTC, which is at a multi-year low. This translates to the fact that the total supply of BTCs held by the long-term holders is at their multi-year high level. The report went on to say that "seeing STH supply this low whilst prices are near ATHs is a relatively unique case."
Twitter handle Wu Blockchain (@WuBlockchain) tweeted:
According to Glassnode, even if the Bitcoin price has retraced more than 10% from its high point recently, the number of non-zero addresses on the network is still rising slowly, hitting a new all-time high, breaking through 38.65 million.
According to Chinese journalist Colin Wu, this suggests that despite the 18% decline in the BTC price from its mid-October peak price of US$69,000, the adoption and accumulation is still continuing.