• Bitcoin supply transacted in the last three months increased from 11.5% to 21.4%, suggesting bullish market trends.
• Long-term holders of BTC have shown a lack of willingness to sell their holdings, with the percentage of Bitcoin supply older than six months rising from 75% to 78%.
• A recent study by Glassnode revealed that this trend might be nearing its inflection point, with an increase in coins younger than three months occurring only when coins older than three months are spent.
Increasing Supply of Young Coins
A recent study by Glassnode revealed that the transfer of wealth from experienced holders to newer demand is occurring, as evidenced by an 86% increase in the percentage of Bitcoin supply transacted in the last 3 months – from 11.5% to 21.4%. This is indicative of bullish market trends and suggests that long-term holders may be selling their holdings and taking profits.
Supply Held for Less Than Six Months Declines
The overall supply held for less than six months has declined sharply in May, suggesting that short-term investors may be cashing out at current prices. Supply swelled up considerably during this period, indicating a noticeable transfer of Bitcoin from experienced holders to newer participants.
Long-Term Holders Show Lack Of Willingness To Sell
Despite the influx of young coins into circulation, long-term holders have still shown a lack of willingness to sell their holdings – with the percentage of Bitcoin supply older than six months increasing from 75% to 78%. This suggests that these investors are holding onto their coins even as prices rise and new buyers enter the market.
The Inflection Point
The inflection point for this trend appears to be approaching, as seen by an increase in coins younger than three months only when coins older than three months are spent (i.e., sold). This implies that long-term investors may soon begin selling off their holdings and taking profits if prices continue to climb higher.