Current Bitcoin Supply Landscape
According to Glassnode, Bitcoin has established a solid base beneath the $30,000 mark. This level is akin to historical trends seen in early 2016 and early 2019. The analysis revealed that the Long-Term Holder (LTH) supply is nearing an all-time high with 14.161 million BTC, while the Short-Term Holder (STH) supply has been relatively stable at 2.914 million BTC during 2023.
Long-Term Holders vs. Short-Term Holders
With 155 days passing since the infamous FTX collapse, holders who haven’t flinched under pressure are categorized as LTH. This timeline is essential because it determines the classification based on how long the coins are held. The division between holders before and after the FTX incident provides a clear picture of market sentiment:
- LTHs: Pre-FTX holders with resilience.
- STHs: Those who entered post-crash, still adjusting.
The “Plateau of Patience” Era
Market cycles often follow a pattern, and Glassnode identifies a current phase dubbed the ‘Plateau of Patience’. LTH supply currently hovers around historical peaks, a trend typically lasting for months, sometimes even years. Historically, even though Bitcoin didn’t hit new lows in 2016 and 2019, significant bull runs only ignited 18 to 24 months later, in late 2020/2021. Buckle up, this ride may take a bit longer!
Profit Patterns Among Holders
This year, Bitcoin has seen notable momentum, backed by an impressive increase in profit-holding coins. The report indicated that bear market bottoms come with widespread capitulation, often balanced by a surge in demand. The numbers from 2023 are eye-opening:
“A total of 6.2 million BTC returned to profit, reflecting 32.3% of supply.”
This indicates a robust base of buyers below the $30k threshold, hinting that this rediscovered profit means good things for Bitcoin’s future.
The Bottom Line
The current landscape suggests that while a bull run may not be right around the corner, the drop below $15,500 seems unlikely. Patience is crucial, just like waiting for your favorite series to come back from hiatus—it’s tough but always worth it in the end!
