Bitcoin hodlers set to trigger race to new BTC price highs, data shows

Seasoned Bitcoin ( BTC ) hodlers are set to trigger another price hike by hoarding BTC, data shows this week. According to chain monitor...


Seasoned Bitcoin (BTC) hodlers are set to trigger another price hike by hoarding BTC, data shows this week.

According to chain monitoring resource Glassnode, the supply of Bitcoin is expected to enter a new aging process.

One-year supply hits low

Highlighting its active offer metric, Glassnode researchers noted that the percentage of Bitcoin’s supply, which moved a year or more ago, forms a local bottom.

Under such circumstances, in the past, holders or “hodlers”, fresh off the sale of these older coins, began to accumulate, increasing the overall age of the dormant supply. This, in turn, created a “supply squeeze” where demand increased relative to the available BTC, and the price benefited. Sales resumed to the peak of local prices, after which the process began again.

Such a circular pattern was in play at the end of 2017 during Bitcoin’s run to $ 20,000, and the all-time high in April 2021 does not appear to be an exception.

The figures are however different between the two years.

“Bitcoin’s supply which has been dormant for at least 1 year is starting to bottom out at 54.2%. Compared to the 2017 high, this indicates that a higher relative proportion of BTC remains in cold storage. Commented Glassnode.

“However, this also indicates the spending of fewer coins” sets the peak of 2021 “.”

More and more “hodlers of last resort”

Co-telegraph frequently reports on the behavior of hodlers and BTC cohorts of different ages influencing the market.

Related: Just another bubble? Bitcoin Price Highs Track Chinese Debt Cycles, New Study Finds

More recently, data has shown that overall, strong hands now have more control over the BTC supply than at any time since October 2020.

The share of the pie belonging to speculative traders also continues to see local resets over the course of deleveraging events like those of May and September of this year.