Glassnode: Bitcoin long-term holdings are at multi-year highs

Glassnode's latest chain report last week shows that long-term Bitcoin holder interest is at multi-year highs, and the market is not yet flooded with profit-taking.

According to a Nov. 22 report from analytics provider Glassnode, these long-term holders (LTH) appear to be continuing to increase their positions while reducing their payouts.

The analysis delves into Spent Volume Age Bands (SVAB), a metric used to determine the age of coins dominating on-chain circulation on any given day. According to Glassnode, the indicator can be used to determine when the process of profit-taking or accumulation begins.

Continuous payouts for coins older than one month begin in November 2020 and end in April-May 2021. The SVAB metric has fallen back to 2.5% of daily volume since October, when BTC hit a record high at the same time as it surged. Glassnode states:

"This could reasonably be interpreted as long-term holders are spending less and are therefore more likely to be adding to positions rather than exiting at a profit."

Source: Glassnode

Glassnode also noted that the total supply held by short-term holders (STH) is at a multi-year low of less than 3 million BTC, which in turn means that LTH open interest is at a multi-year high.

“Seeing such a low supply of STH at a time when prices are near all-time highs is a relatively unique situation,” the report noted.

While short-term holders took profits at "historic" highs and broke even at lows over the past week, the market is still not "overcrowded with profit-taking."

The findings suggest that there are no signs of a major sell-off just yet, and the bulls are likely to continue to hold the upper hand until the end of the current cycle.

On Oct. 12, Cointelegraph reported that long-term holders held 13.3 million BTC, worth $754 billion at the time, despite not seeing any outflows in more than five months.

On Nov. 22, Wu Said Blockchain responded to the report on Twitter, saying that the number of non-zero addresses had also hit an all-time high. This shows that despite Bitcoin’s 18% drop from its mid-October peak of $69,000, adoption and accumulation continues.

According to Glassnode, even though the price of Bitcoin has fallen by more than 10% from its recent highs, the number of non-zero addresses on the network has slowly increased to a new all-time high of 38.65 million.

— Wu Shuo Blockchain (@WuBlockchain) November 22, 2021

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