Bitcoin (BTC) 'Diamond Hands' Control Highest Share of Sovereign BTC Supply in History

Bitcoin (BTC) 'Diamond Hands' Control Highest Share of Sovereign BTC Supply in History

Bitcoin's (BTC) "strongest hands" are eating out of its non-exchange supply aggressively. Their domination prints a new historic high, on-chain data says.

81% of non-exchange Bitcoins (BTC) controlled by passionate holders

According to data by leading on-chain analytics tool Glassnode, long-term holders of flagship cryptocurrency Bitcoin (BTC) have reached a new record in terms of "sovereign supply."

1/2 #Bitcoin Long-Term Holders now own the highest % of Sovereign Supply in history: 80.9%.Sovereign Supply is the total supply NOT on exchanges.The name is @_Checkmatey_'s brainchild and I think it's perfect. What better term to describe self custody than sovereignty?— TXMC (@TXMCtrades) October 6, 2021

"Sovereign supply" is an on-chain metric introduced by the lead analyst of Glassnode, a crypto expert and podcaster who goes by _Checkmatey_ on Twitter.

It refers to the total supply of Bitcoins (BTC) that are stored out of centralized exchanges. In Q4, 2021, long-term holders are responsible for almost 81% of BTC's sovereign supply.

According to the chart, in Q2-Q3, 2021, Bitcoin (BTC) long-term holders aggressively accumulated Bitcoins (BTC). The increase in their share perfectly correlates with the decrease of Bitcoin's holdings by short-term holders.

Accumulation is in the making

As covered by U.Today previously, on-chain data analysts witness a robust accumulation trend demonstrated by large-scale and long-term holders.

The latest wave of accumulation began in mid-September. It is this wave that might have saved the Bitcoin (BTC) price from expanding its dropdown.

Also, since mid-May, Bitcoin (BTC) price movement demonstrated strong evidence of a Wyckoff accumulation wave.