Statistically, the number of diamond hands has never been higher.
Per the research, diamond hands are at an all-time high, which signifies that the Bitcoin supply has hit an all-time high of 65.7%, as suggested by Glassnode’s analysis.
More than only Bitcoin’s price may be utilized to gauge the health of the crypto market. Locations that store BTC as a long-term investment are the Bitcoin economy’s backbone and provide stability during moments of considerable volatility.
The rate at which BTC’s flowing amount fluctuates can be used to determine the amount of BTC held as a long-term investment. The longer a portion of the circulating supply remains inactive, the stronger the market gets, as addresses storing these coins commonly serve as a solid substrate for the price of Bitcoin.
Looking at Bitcoin supply that hasn’t moved in over a year exposes “diamond hands,” or the most stubborn procedure commonly.
The Bitcoin supply, which was last active more than a year ago, has reached an all-time high of 65.7% this month, according to Glassnode records. The present share is significantly more than it was in May 2022, when the cryptocurrency market saw explosive growth. The number of diamonds in clutches is at an all-time high, according to the data.
The fact that 65.7% of Bitcoin’s availability has been inactive for much more than a year indicates that a record number of addresses continue to hold their coins despite the economic contraction.
Based on data, the overwhelming of the currently idle supply was accumulated between May and July of 2021. At the time, the price of Bitcoin fell as almost all major miners were forced to halt production and leave China. Piling up BTC amid tumultuous and troubled times indicates an unshakeable conviction in the market despite price decreases.
Only during bull markets do these diamond hands sell their holdings. This is supported by the accumulation and distribution cycles that occur throughout bear and bull markets.
The most recent market downturn knocked out almost 75% of Bitcoin’s value, wiping any potential profits these earlier currencies may have generated. 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 occurs, these addresses will release their tokens to profit.