Bitcoin Diamond Hands Holding Strong: Over 30% of Supply Inactive for 5+ Years

Recent data indicates that a significant portion of Bitcoin holders, known as “diamond hands,” have maintained their positions steadfastly, with nearly a third of the supply remaining unmoved for over five years.

A recent post by the market intelligence platform IntoTheBlock delves into the state of the most dormant Bitcoin supply, specifically focusing on Unspent Transaction Outputs (UTXOs) that have aged beyond the five-year mark. This supply comprises coins held by investors who have refrained from selling or transferring them for more than five years.

These long-term holders (LTHs) with coins aged over 155 days are recognized for their resilience in the market, as extended holding periods typically indicate a decreased likelihood of selling. The LTHs who have kept their supply dormant for over five years are considered the most resolute among investors.

However, not all of this aged supply necessarily reflects intentional holding strategies. Over time, some tokens may have been lost due to forgotten existence or inaccessible keys. While a portion of the supply may never re-enter circulation, the rest showcases unwavering conviction from long-term holders.

Analyzing the trend in the percentage of Bitcoin supply within this age bracket over the cryptocurrency’s history reveals fluctuations. The 5+ year LTH supply experienced a slight decline earlier in the year as some long-term investors seized profits from rallies, but the metric has since stabilized.

Currently, approximately 30.7% of the total Bitcoin supply remains untouched for over five years, indicating the resilience of these investors who weathered market fluctuations, including the COVID-19 crash, bull markets, bear markets, and recent rallies.

Given their demonstrated commitment, it is improbable that most of these investors would consider selling their Bitcoin unless under exceptional circumstances.

In terms of price action, Bitcoin has seen a recent decline of nearly 4%, bringing its price to $58,100. This price movement aligns with the broader market trend and reflects ongoing volatility in the cryptocurrency space.

Overall, the data underscores the steadfast nature of long-term Bitcoin holders, highlighting their unwavering commitment to their investments despite market uncertainties and price fluctuations.