Bitcoin: New holdings spike; good news ahead?
Several analyses centered on Bitcoin of late have unanimously agreed that the king coin was in the middle of an accumulation phase, with most long-term holders exhibiting a lack of desire to sell their holdings.
However, a recent study by Glassnode revealed that this trend might be nearing its inflection point. The percentage of Bitcoin supply transacted in the last three months increased from 11.5% to 21.4% in May, an exponential increase of 86%.
This meant that there was a noticeable transfer of Bitcoin from longer-term investors to newer participants, suggesting bullish market trends.
Bitcoin supply that is less than three months old is typically considered as highly mobile, liquid, and most likely to be spent during periods of volatile price swings. Also referred to as “young coins”, this supply increases in volume during a bull market phase when long-term holders start to sell and take profits. As indicated below, the supply swelled up considerably in May.
But does that really mean “diamond hands” have locked in gains?
As per the graph below, BTC’s supply older than six months has grown from a share of 75% at the beginning of May to 78% at the time of writing, indicating the lack of willingness of long-term holders to sell.
