Bitcoin holders unfazed by recent market volatility

Long-term holders appear to be holding on to their investments despite recent market volatility, according to multiple on-chain indicators for the world’s largest digital asset.

Notably, LookIntoBitcoin data shows that the 1+ year HODL wave (a measure of Bitcoin holdings that have not been touched for at least a year) peaked at 69.2% on July 7 and remained high at 68.6%.

Despite Bitcoin (BTC) crashing 10% in two hours on August 17, long-term holders largely refrained from liquidating or moving their assets.

Bitcoin rose 6.2% to $28,160 on Tuesday, its biggest one-day gain in five and a half months, as U.S. bond yields fell sharply and Grayscale won a small victory in its battle with the SEC to review its application to convert its flagship trust fund into a spot Bitcoin ETF.

“If Grayscale’s application to convert its Bitcoin Trust into an ETF is indeed approved in the future, we can expect BTC to climb significantly from here,” Yield App CEO Tim Frost told Blockworks. The asset has since fallen 1.8% and is currently trading at around $27,250, exchange data shows.

Bitfinex Alpha wrote in a recent research note that new data suggests that 40% of Bitcoin’s total supply has remained stable for more than three years.

The change in market dynamics suggests an underlying sentiment of resilience and optimism among long-term holders, who appear undeterred by recent market turmoil and reversals. Coin Days Destroyed (CDD), an on-chain metric that measures the level of long-term coin activity, has fallen to a low on March 6, based on its 30-day average. According to this metric, lower CDD is generally associated with less selling pressure in the market.