Data shows the Bitcoin diamond market remains volatile, with almost a third of the supply going unsold in the past five years.
Much of Bitcoin’s supply has been dormant for more than five years
In the up-to-date fasting on X, market intelligence platform IntoTheBlock discussed what the most dormant BTC supply has looked like recently. The supply in question consists of Unspent Transaction Outputs (UTXOs) that have exceeded a five-year period.
In other words, this supply includes coins from investors who have been holding them for more than five years without selling them or transferring them from their wallets.
Investors who hold coins older than 155 days are commonly known as “long term holders” (LTH), so this five-year supply will represent a holding of particularly aged LTH.
Statistically speaking, the longer an investor holds their coins, the less likely they are to sell those coins at any given time. As such, LTHs are considered to be the sturdy side of the market. LTHs that have been dormant for more than five years would obviously be the diamond hands of diamond hands.
It is worth noting, however, that not all of this supply would actually indicate HODLing. The reason is plain: the older the tokens become, the more likely they are to be lost, whether through simply forgetting about their existence or through the unavailability of their keys.
So, since the stock in question is over 5 years aged, some of it will likely never see the delicate of day. That said, the rest would have aged by conviction alone.
Below is a chart showing the trend in the percentage of Bitcoins found in this age group throughout the cryptocurrency’s history.
Looks like the value of the metric has been going down in recent days | Source: IntoTheBlock on X
As you can see from the chart above, the supply of 5-year Bitcoin LTH contracts fell at the beginning of the year as some aged investors woke up to take profits from the rally, but the decline was minor and the indicator has been trending sideways since then.
Currently, the value of this indicator is 30.7%, which means that almost a third of the total cryptocurrency supply in circulation has not been sold in over five years.
For reference, the five-year cutoff period means the earliest possible buying point for these coins is August 2019. Thus, investors have at least survived the COVID-19 crash, the bull market in 2021, the bear market in 2022, and now the rally that began in 2023.
Given this resilience, it is unlikely that most of these investors would sell their Bitcoin under any but very specific circumstances.
BTC price
Bitcoin has fallen by almost 4% in the last 24 hours, pushing its price to $58,100.
The price of the coin appears to have plunged recently | Source: BTCUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
