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- Long-term Bitcoin holders keep aging, signaling stronger conviction among diamond hands investors.
- Illiquid Bitcoin supply hits record levels as more coins move into older holding cohorts.
The most patient group of Bitcoin holders, diamond hands, appears to be getting older. The latest on-chain data from Glassnode shows that coins previously held by 5-7 years investors are now shifting to the 7-10 years category, with the majority now in the 10-years category or above.
The realized cap for the 5-7 years group has decreased from around $14.9 billion to just $8.5 billion in a year. However, this doesn’t mean they’re dumping their assets en masse; rather, their coins are maturing and shifting categories.
Bitcoin Diamond Hands Keep Growing Older While Supply Stays Locked
Although the majority are choosing to hold on, it’s been noted that around 385,000 BTC have been sold by the 5-7 years group this year. This amount appears more like profit-taking than a sign of surrender.
Meanwhile, the price of Bitcoin is currently hovering around $112,784, up around 2% in the past week. This increase has certainly triggered some medium-term investors to take profits.
Furthermore, the accumulation trend is becoming increasingly apparent. The illiquid Bitcoin supply reached a new record of 14.3 million BTC, or approximately 72% of the total circulating supply. This means that most coins are no longer easily traded in and out of exchanges.
In fact, coins that have not changed hands for more than 155 days have now reached 14.7 million BTC, an all-time high. This situation reinforces the view that the market is dominated by patient investors rather than short-term speculators.
However, the 3-5 years holding group appears to be slowing down in distribution. They still control around 11.9% of the Realized Cap and have not been tempted to sell large amounts.
It could be said that they appear to be waiting for a higher price level before making their next move. This situation further reinforces Bitcoin’s image as an asset that is often “frozen” by long-term investors.
Safe Havens and Social Unrest Fears Drive BTC’s Narrative
Furthermore, external factors also contribute. In early September, the CNF noted that trading activity on Binance emerged as a major driver of Bitcoin’s price momentum.
Meanwhile, ETF fund flows have remained stagnant since early June, leaving short-term volatility largely driven by retail traders and daily speculators. This contrasts with expectations that institutions, through ETFs, would be the driving force, but in reality, the role of short-term traders is more pronounced.
On the other hand, Robert Kiyosaki has been vocal. He positions Bitcoin, gold, and silver as safe haven assets as Japan and China are busy dumping US bonds.
He even warned that if the European economy declines further, it could trigger social unrest, with France being mentioned as a potential center of resistance. This opinion further reinforces the reason for some investors to hold onto Bitcoin longer, viewing it as a hedge against global uncertainty.
