According to a new report shared by Onchained, one of CryptoQuant’s leading analysts, the percentage of Bitcoin (BTC) supply held by long-term investors with future plans has reached a record high of 80.34%.
Long-term holders are investors who generally hold their coins for 1 year or longer.
Who Holds Bitcoin?
According to Onchained, the existence of BTC is gaining a different dimension over time. The growth in BTC supply held for long-term investment indicates increased confidence among experienced investors who are increasingly reliant on Bitcoin assets.
This has happened despite the challenging market conditions Bitcoin has experienced recently. As of this writing, BTC was trading at $26,789. The price of BTC, which has been almost stagnant since April and traded within a narrow range, recently encountered a resistance level at $28,500. Subsequently, it experienced a sharp drop due to economic events and war.
While long-term investors continue to hold their BTC despite the current price conditions, short-term investors seem to have adopted a different strategy.
Onchained made the following statement about short-term investors:
On the contrary, the supply held by short-term investors reached its lowest point, constituting only 19.34% of the circulating supply. This decrease reflects a decline in short-term speculations and a shift towards longer-term investment strategies.
The analyst made the following statement to illustrate the fact that a large majority of the circulating supply of BTC is controlled by investors who intend to hold it for a longer period:
Holding a large portion of the circulating supply for longer periods indicates a more mature and confident market environment. Experienced and patient investors are accumulating Bitcoin, highlighting their belief in its long-term potential.
The Future of Bitcoin
As of the time of writing, the Spent Output Profit Ratio (SOPR) was alarming for both long-term and short-term investors in BTC. At the time of writing, both groups were trading at a loss. This metric is defined as a measure of the profitability of BTC transactions.
If the SOPR value is above 1, it indicates that investors are selling coins at a profit. Conversely, when the SOPR value in Bitcoin falls below 1, it indicates that investors are selling their assets at a loss.
According to data from CryptoQuant, the SOPR value was 0.93 for long-term BTC investors and 0.99 for short-term investors.
