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Bitcoin HODLer Supply Continues Decline: A Worrying Sign?

Bitcoin HODLer Supply Continues Decline: A Worrying Sign?
On-chain data shows the Bitcoin long-term holder supply has continued declining recently. Here's what this could mean for the asset.

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The long-term holder supply of Bitcoin has been declining recently, according to on-chain data. Long-term holders (LTHs) are investors who have held onto their coins for over 155 days. Despite their reputation for being stubborn, the LTHs have recently participated in a selloff, with the 30-day change in their supply showing a negative trend. This decline has been attributed to profit-taking, with the sharp plunge occurring during the rally towards the new price all-time high (ATH). Despite the bearish price action, the indicator has continued to move down, indicating market-wide pessimism. However, this may not necessarily be a bad sign in the long term, as LTHs have participated in selloffs in the middle of the last two bull runs. At the time of writing, Bitcoin is trading at around $61,200, down more than 4% over the past week.

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