Short-Term Holders Fall To 2011 Levels

As liquidity dries up, HODLing has become the preferred market state.

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Glassnode's preferred measure of the supply of bitcoins controlled by short-term holders has shrunk to its lowest level since 2011.

The blockchain analytics firm's latest report describes the market as being characterized by "extreme apathy and boredom", with extremely low trading volumes as bitcoin once again sticks to a surprisingly narrow range.

One interesting dynamic is that even in such times of uncertainty and low interest, the preferred market behavior is holding. The percentage of coins that has moved in the last 155 days has fallen to a 12-year low.

Supply held by the Long-Term Holder cohort has reached a new ATH of 14.74M BTC. Conversely, the supply held within the Short-Term cohort, representing the more active portion of the market, has fallen to the lowest supply held since 2011.
HODLing certainly remains the primary market dynamic, which both signals a steady conviction amongst existing holders, but highlights that these investors are likely the only ones who remain.

"Liveliness", which represents the relative holding balances of different investor durations, has now returned to pre-2021 bull market conditions.

Bitcoin Liveliness: Glassnode
Conditions have reset to 2020 levels.

While longer-term holding characterizes the market, almost all short-term holders are underwater, which could make them sensitive to further downside movements (which could trigger capitulation). It could also present numerous resistance levels in the path to reclaiming $30,000—by which time, most of those short-term holders will be back in profit—because there will be many opportunities to sell and break even.

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