Long-Term Bitcoin Holders Resist Selling Amid Recent Highs — What This Signals
30 May 2024 - 11:00AM
NEWSBTC
As Bitcoin flirts with its previous all-time highs, the celebrated
‘diamond hands’—a term in crypto parlance denoting long-term
holders (LTHs)—are demonstrating notable restraint, selling their
holdings at a rate notably lower than in previous bull markets.
According to a recent analysis by on-chain analytics firm
Glassnode, despite the near $70,000 valuation, the selling pressure
from these seasoned investors remains subdued. Related Reading:
Crystal Ball Or Crazy Talk? Analyst Predicts Bitcoin To Hit
$156,000 By May 2025 Bitcoin Diamond Hands Loyalty Amid Highs The
phenomenon of ‘diamond hands’ holding firm as Bitcoin reaches
significant price levels is not new but remains a cornerstone of
market stability. These LTHs, defined by Glassnode as wallets
holding Bitcoin for over 155 days, display investment maturity that
underpins the market’s resilience. Even with Bitcoin’s price
hovering around $67,722—down 3.5% over the past week but still up
slightly by 0.6% in the last 24 hours—these investors are not
rushing to cash out. Additionally, Glassnode’s report highlights
that long-term holders are yet to reach the point of selling that
typically precedes a market downturn. The market value to realized
value (MVRV) ratio, a reliable metric to gauge the profitability of
long-held Bitcoins, indicates that many LTHs are sitting on
substantial unrealized profits. Historically, LTHs begin to sell
once this ratio hits particular highs, which has not yet occurred
despite the recent peak. Interestingly, during the surge to $73,800
in March—the latest all-time high—long-term holders were not the
primary sellers. Glassnode pointed out that only a modest 519k BTC
was sold by LTHs during this period, considerably less than in
previous bull runs, where monthly sales approached nearly one
million BTC. Of this, 519k BTC sold, “20% originated from Grayscale
ETF holders,” as reported by Glassnode. This restrained selling
behavior is significant, suggesting a strategic approach to holding
and a belief in further price appreciation. The Future Holds
Optimism Moving forward, Glassnode anticipates that LTHs will
continue to play a pivotal role in the market dynamics. Their
recent behavior indicates a shift towards re-accumulation following
significant distribution around the $73k all-time high. Such
patterns underscore a sophisticated strategy: Bitcoin’s most
steadfast supporters may be gearing up for another run,
anticipating higher peaks beyond current levels. Related Reading:
Crypto Expert Says Market Has Begun A Macro Bullish Expansion –
What This Means For Bitcoin And Altcoin Prices Amid these
developments, crypto analyst Cryptorphic has forecasted Bitcoin
reaching as high as $156,000 by May 2025, adding to the sentiment
around Bitcoin, which remains interestingly bullish. #Bitcoin could
hit $156,000 by May 27 2025! These green boxes represent the price
action after #BTC halvings. We’ve never seen a red year after a
halving. Bitcoin halvings are significant events, here are the
percentages of Bitcoin’s price increase one year after each
halving… pic.twitter.com/QEmNN8OuP2 — Cryptorphic (@Cryptorphic1)
May 27, 2024 Featured image created with DALL·E, Chart from
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