Recent on-chain data indicates that veteran investors in the Bitcoin market are showing signs of exhaustion, yet they still retain a significant 11.9% of the total supply. This raises questions about the future dynamics of Bitcoin’s market and the potential implications for price movements.
3-5 Year Old Bitcoin Holders Have Slowed Down Their Selling
In a recent post on X, on-chain analytics firm Glassnode examined the latest trends concerning the Realized Cap of Bitcoin investors holding for 3 to 5 years. The term “Realized Cap” refers to an indicator that measures the total value of Bitcoin by considering the price at which it was last transacted on the blockchain. This offers a more grounded perspective on the actual value of tokens in circulation.
The Realized Cap is effectively the sum of the acquisition prices of all tokens within the circulating supply, reflecting the total capital that investors have used to purchase their bitcoins. A modified version of this metric, known as Realized Cap HODL Waves, helps track the values based on specific investor cohorts. For our discussion, we are focusing on those who have held their Bitcoin for 3 to 5 years.
A recent chart shared by Glassnode illustrates the trend in the Realized Cap for this investor cohort over the past few years:
The chart reveals that the Bitcoin Realized Cap held by the 3-year to 5-year investors reached an all-time high (ATH) of 15.7% in November. Following this peak, these investors initiated a sharp selloff, seizing the profit opportunity presented by the recent price rally. After pausing their selling in January, they resumed in April, underscoring some holders’ decisions to cash out during the latest price surge.
A detailed examination of the chart suggests that these veteran holders might be experiencing a state of selling exhaustion once again.
While the supply appears to be entering a potential sideways phase, it does not imply that the 3 to 5-year investors have become negligible threats to Bitcoin. This cohort currently holds a substantial 11.9% of the asset’s Realized Cap, indicating their continued influence.
These steadfast holders may be biding their time for higher prices, making it likely that this supply could begin to circulate if the bull run maintains its momentum. Their actions may also contribute to market resistance as selling pressure ramps up.
BTC Price
As of now, Bitcoin is trading at approximately $105,800, marking a decline of over 3% in the past week.
