X

Bitcoin ‘liveliness’ lowest since 2021 amid new 5-year BTC hodl record

Bitcoin (BTC) long-term holders are knuckling down as a record portion of the BTC supply stays dormant for years.

Data from on-chain analytics firm Glassnode confirms that the percentage of the supply now stationary for at least five years is higher than ever.

2017 BTC buyers not this year’s sellers

Bitcoin has recovered almost 40% from its macro lows of $17,600 just two months ago, but for the cryptocurrency’s diamond hands, it has been a non-event.

Those who purchased BTC in 2017 or earlier continue to hodl their stake, and the trend points to more, not less, hodling in recent times.

Not content with the reversion above the 2017 highs of $20,000, long-term holders remain committed to not selling, the Glassnode data shows.

On Aug. 18, the percentage of the BTC supply staying untouched in its wallet for at least five years reached a new all-time high of 24.351%. Almost one quarter of the 19.12 million BTC circulating supply has thus been off the market since 2017 or earlier.

Bitcoin 5-year hodled coins annotated chart. Source: Glassnode/ Twitter

While recent months have been marked by major sell-offs, particularly among institutional investors, it would thus appear that hodlers really are unfazed by current narratives.

Previously, Cointelegraph reported on Bitcoin’s HODL Waves metric showing a similar story for slightly “younger” coins hodled for one year or more.

Not so live

A similar story, meanwhile, comes from Bitcoin’s “liveliness” — a calculation of hodler behavior that reached its lowest since the start of 2021 this week.

Related: Bitcoin price heads above $23.5K after highest EU inflation in history

Liveliness, a term coined by Bitcoin developer Tamas Blummer, is plotted as a score between 0 and 1, which increases or decreases, depending on how much hodler selling is occurring.

As Glassnode neatly summarizesit is “the ratio of the sum of Coin Days Destroyed and the sum of all coin days ever created.” Coin Days Destroyed refers to the resetting of the counter when each Bitcoin moves, the “days” referring to days spent dormant, not moving around the network.

“It is apparent that Liveliness increases (and HODL decreases) during time periods of Bitcoin price increases and investors accumulate to HODL during periods of range bound prices,” Blummer explained in a dedicated introduction to the Liveliness metric published in late 2018.

Now at 19-month lows, Liveliness points to increasing desire to hodl across the Bitcoin network in general.

Bitcoin Liveliness chart. Source: Glassnode

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Thiru Venkatam: Thiru Venkatam is a distinguished digital entrepreneur and online publishing expert with over a decade of experience in creating and managing successful websites. He holds a Bachelor's degree in English, Business Administration, Journalism from Annamalai University and is a certified member of Digital Publishers Association. The founder and owner of multiple reputable platforms - leverages his extensive expertise to deliver authoritative and trustworthy content across diverse industries such as technology, health, home décor, and veterinary news. His commitment to the principles of Expertise, Authoritativeness, and Trustworthiness (E-A-T) ensures that each website provides accurate, reliable, and high-quality information tailored to a global audience.
Related Post