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Bitcoin (BTC) Short-Term Holders' Supply Plunges to Cycle Low, Glassnode Says

Mon, 08/14/2023 - 15:23
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Vladislav Sopov
Leading on-chain analyst Glassnode registers 'stage of extreme apathy and exhaustion' dominating Bitcoin (BTC) markets today
Bitcoin (BTC) Short-Term Holders' Supply Plunges to Cycle Low, Glassnode Says
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Amid a previously unseen volatility drop on Bitcoin (BTC) markets, long-term holders demonstrate passionate confidence in their asset. Meanwhile, "tourists" are only responsible for 2.56 million Bitcoin (BTC) in circulation, which is a low for this market cycle.

Bitcoin (BTC) Long-Term Holders' supply prints new record: Glassnode

Bitcoin (BTC) Long-Term Holders' supply routinely sets new all-time highs, while the overall market entered a stage of "extreme apathy and exhaustion." "Diamond hands" today are responsible for 14,600,000 Bitcoins (BTC), which is the highest level ever for this indicator. Such calculations were shared by Glassnode experts in their The Week On-Chain #33 newsletter.

The tribe of short-term holders continued its capitulation. Their share dropped to 2,560,000 Bitcoins (BTC), which is the absolute low for the fourth Bitcoin (BTC) cycle. This group of holders has been selling its Bitcoin (BTC) stake since early April 2023. As such, the overall sentiment in the Bitcoin (BTC) community remains strong, analysts say:

Overall, this suggests that conviction of Bitcoin investors does remain impressively high, and very few are willing to liquidate their holdings.

At the same time, the volatility dropped to multi-year lows. In the last seven years, the Bollinger Bands range was lower only once, in January 2023.

As covered by U.Today previously, Bitcoin's (BTC) 30-day estimated volatility dropped to levels unseen since the launch of the Bitcoin (BTC) network in 2009.

Bitcoin (BTC) Volatility Drops to Historic Low, Turbulence Coming?

Ethereum (ETH) volatility indicators on various time fames follow the same patterns, and the aggregated transaction fee volume is also shrinking.

"Very boring market may remain on the road ahead"

In general, investors are unwilling to move their money on-chain at this stage in the market. However, we cannot say that the whole picture is dark. The realized market capitalization of Bitcoin (BTC) has been increasing since January 2023, and capital has slowly entered the network.

Glassnode experts are not surprised at all: Bitcoin's (BTC) performance just going through a "bearish market hangover" as it did in previous cycles. As such, we should not expect turbulence in the coming weeks:

The Realized Cap is climbing, but only very slightly, suggesting a very boring, choppy, sideways market may remain on the road ahead.

Also, Glassnode experts recalled that the vast majority of holders are underwater at current prices, which makes a volatility drop even more sensitive for market participants.

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About the author

Blockchain Analyst & Writer with scientific background. 6+ years in IT-analytics, 3+ years in blockchain.

Worked in independent analysis as well as in start-ups (, Monoreto, Attic Lab etc.)