Data shows that the supply of bitcoins that are more than 1 year old has picked up pace recently, indicating that even the strong hands of crypto are feeling the fear in the market.
Bitcoin Diamond hands are starting to shake in the current market
According to the latest weekly report from Glassnode, the old supply of BTC has been selling out in recent days.
The relevant indicator here is “Revived Supply Last Active 1+ Years”, which measures how many coins that have been sitting since at least a year ago are seeing movement per day.
When the value of this metric increases, it means that a large amount of coins belonging to bitcoin holders are being transferred at the moment.
Such a trend, when prolonged over a period, can be bearish for the price of the crypto as such movement can mean selling diamonds in the market.
On the other hand, a low value of the metric means that there has been no significant change in the recent supply of more than a year old.
Related Reading | Bitcoin Long-Term Holder Loss-Taking Now Highest Since 2019
This trend suggests that holders are holding onto their coins, a sign that may be neutral or bullish for the coin’s value.
Now, here is a chart that shows the trend in active bitcoin supply over the past 12 months to 1+ years ago:
The value of the indicator seems to have been high recently | Source: Glassnode's The Week Onchain - Week 25, 2022
As you can see in the graph above, a significant amount of active coins from more than a year ago showed movement in the recent past.
Furthermore, not only that, the spending of old coins is increasing rapidly, now reaching a value of 20k to 36k BTC per day.
Related Reading | New York’s latest bill on bitcoin mining draws sharp criticism from the clamping down industry
This means that these long-term holders have been increasing their selloff over the past few days as the price of the crypto is struggling.
The trend suggests that the recent crash has created fear and panic even in the stronger hands of bitcoin, who are usually the last to move during a sell-off.
If the selling of coins older than one year continues, BTC may see further downside in the near future.
At the time of writing, the price of bitcoin is floating around $21k, down 5% over the past seven days. In the past month, the crypto has lost 28% in value.
The chart below shows the coin’s price trend over the past five days.
Looks like the value of the crypto has been steadily rising over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com