Diamond Hands Are At An All-Time High According To Research

Diamond hands are at an all-time high according to research, which means that the supply of Bitcoin has reached an unprecedented high and is at 65.7%, as Glassnode’s research suggests.

More than simply Bitcoin’s price may be used to determine the health of the crypto market. Addresses that retain BTC as a long-term investment form the cornerstone of the Bitcoin market and hold the fort during periods of significant volatility.

The quantity of BTC retained as a long-term investment can be assessed by the frequency with which its circulating supply changes. The longer a fraction of the circulating supply remains inactive, the stronger the market becomes, because addresses holding these coins frequently represent a solid support for Bitcoin’s price.

Looking at Bitcoin supply that hasn’t changed in more than a year reveals what the market refers to as diamond hands – the most tenacious hodlers.

The supply of Bitcoin, which was last active over a year ago, has achieved its all-time high this month and is now at 65.7%, according to statistics from Glassnode. The current proportion is much greater than the figures from May 2022, when the crypto market saw tremendous volatility. Diamond hands are at an all-time high according the research.

The fact that 65.7% of Bitcoin’s supply has been idle for more than a year demonstrates that a record proportion of addresses are still holding their coins throughout the down market.

According to the statistics, the majority of the supply that is now idle was amassed between May and July 2021. At the time, the price of Bitcoin plummeted as practically all significant miners were compelled to shut their operations and leave China. Accumulating BTC through stressful and uncertain times demonstrates a strong belief in the market that appears unshaken by price declines.

The market only sees these diamond hands exit their holdings during bull runs. The accumulation and distribution cycles that occur during bear and bull markets support this.

The most recent market decline wiped off about 75% of Bitcoin’s value, erasing any potential earnings these earlier currencies may have achieved. During down market cycles, however, addresses holding coins for more than a year nearly usually refuse to sell at a loss and instead prefer to ride out the storm until the next bull run.

When the bull market arrives, these addresses will be the ones releasing their tokens in order to benefit.

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