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Recent on-chain data reveals a significant spike in spending by Bitcoin long-term holders (LTHs). This analysis explores how current activity compares to the 2021 bull run and what it could mean for the market.
Key Metrics: Bitcoin's Revived Supply from 1+ Year Holders
Glassnode’s "revived supply last active 1+ years" indicator tracks the USD value of Bitcoin moved by holders who’ve retained their coins for at least one year. These investors, part of the broader long-term holder (LTH) cohort, are typically reluctant to sell—making their recent $295 million in movements noteworthy.
Why This Matters
- LTHs (holders of coins for 155+ days) rarely sell during market volatility.
- Spikes in revived supply often signal profit-taking during price rallies.
- Current activity remains below 2021 bull run peaks, suggesting tempered selling pressure.
Comparing Current Trends to the 2021 Bull Market
While the recent $295 million spike is substantial, it pales in comparison to the frequent, larger surges seen during 2021’s bull run. Historical data shows:
| Period | Revived Supply (USD) | Market Impact |
|------------------|-------------------------|----------------------------|
| 2021 Bull Run | Multi-million-dollar spikes | Often preceded local tops |
| Current (2023) | $295 million peak | Similar to pre-bull buildup |
👉 Explore Bitcoin market trends for deeper insights into LTH behavior.
Implications for Bitcoin’s Rally
- The current sell-off resembles early-stage accumulation phases rather than distribution tops.
- Bitcoin’s price resilience (~$30,600 at press time) suggests the market may absorb this selling pressure.
FAQ: Bitcoin Long-Term Holder Activity
Q: Why do long-term holders sell during rallies?
A: Profit-taking opportunities and portfolio rebalancing incentivize even the most patient investors to liquidate portions of their holdings.
Q: Does LTH selling always indicate a market top?
A: Not necessarily. Smaller spikes (like the current one) often occur during consolidation phases, while larger surges may signal overheating.
Q: How does this affect short-term traders?
A: Monitor LTH activity alongside volume and price action. Current levels don’t yet suggest a major reversal.
👉 Stay updated on Bitcoin’s on-chain metrics to time your trades effectively.
Conclusion
While Bitcoin’s long-term holders are capitalizing on recent gains, the scale of their selling remains below 2021’s bull market benchmarks. This aligns with earlier market cycles, where moderate LTH distribution preceded continued upward momentum. Traders should watch for sustained spikes in revived supply as a potential warning sign.
Data sourced from Glassnode and TradingView. Editorial review adheres to strict accuracy and unbiased reporting standards.
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