Online analytics provider, Node Glass, points out that long-term bitcoin holders are refusing to sell despite bitcoin markets surging to a five-month high.
In its October 11 on-chain report, Glassnode notes that “long-term holders” — BTC wallets that have not been withdrawn for more than 155 days — currently hold approximately 13.3 million BTC, or 70% of the Bitcoin supply.
The report notes that long-term owners have increased their total funds by more than 2.37 million BTC (about $134 billion at current prices) over the past seven months. Since 186,000 BTC were mined recently by miners in the same period, Glassnode concluded that long-term whales accumulate 12.7 times more BTC than they generate as a new resource.
Although holders refused to sell long-term, Glassnode noticed an increase in online activity as the price of Bitcoin soared to a local high of $57,860 on October 12.
In October, the number of active online addresses increased by 19% to 291,000, a level not seen since the start of the rapid upward trend in December 2020. Glasno indicated that the increase in activity could lead to more upward momentum, saying:
“The most active market participants have historically been associated with increased interest in an asset in the early stages of beef markets.”
The report also indicated an increase in the average transaction size of approximately 1.3 BTC per transfer, which indicates an increase in the volume of inflows of institutional capital on the chain. During August, the average transaction size decreased to 0.6 BTC per transfer.
Last week, the Bitcoin network recorded its highest daily settlement of $31 billion ever.
On this topic: The flow of bitcoins from central exchanges has grown to 100,000 BTC per month.
On October 12, Glassnode reported that the Bitcoin balance on central exchanges had fallen to a three-year low of 2.4 million BTC, which also indicated that many investors would prefer higher prices.
Industry watchers have suggested that whales may be ahead of the BTC market pending approval of a Bitcoin ETF this month.