Bitcoin (BTC) investors continue to hold BTC at $40,000, even though they bought it at low levels earlier in 2021.
In the June 14 issue of The Week On-Chain, network watchdog Glassnode reported that buyers in the beef market have refused to withdraw funds since the early months of this year.
The “too small” supply is declining
Bitcoin has had low sales in recent weeks as the price remains between $30,000 and $41,000.
Moderate volatility has returned in recent days, but there are few money-making opportunities for most inventors in today’s environment.
Glassnode suggests that this becomes apparent by looking at the so-called HODL waves, an indicator that shows how much was moved from the Bitcoin supply for the last time. They are based on Bitcoin’s realized capitalization – a measure of market value that takes into account the price at which each coin was last sold.
HODL waves confirm that due in part to low volatility, the supply of bitcoin is getting stale and few investors are selling.
“Not only are we seeing a decrease in the number of very young coins (<1 month) due to the recent low volume on the chain, we are also seeing an increase in the proportion of 3 to 12 month old coins,” the researchers explained. ... “These are the same HODL coins accumulated during the 2020 bull market through January 2021.” Chart with distinct waves of Bitcoin HODL. Source: Glassnode Thus, even coins that now generate a large percentage, if not twice the purchase price, remain dormant. Glassnoud admitted that "some holders of LTHs (long-term holders) have earned and will benefit from their coins." “What is common across all Bitcoin cycles is that LTH uses the vast majority of its coins due to bullish confrontations, which reduces the cost of failure when beliefs return.” "The Little Guy" is back In the long or short term, investors with smaller total assets grow. As Glassnode noted later this week, wallets with less than 1 BTC continue to account for more and more of the total Bitcoin supply. Related: Bitcoin Price Down, Fidelity Official Says Crypto Market Is Exiting 'Extreme Fear' “Little man’s response to developing bitcoin as an asset in supply distribution can be seen,” the company wrote on Twitter on Wednesday. While Bitcoin adoption by institutions, and now the government, grabs most of the headlines when it comes to expanding influence, small investors are the individuals making notable forays into the market this year.