Positive long-term holder behavior could support the broader uptrend in bitcoin, whose prices have nearly doubled this year.
- "The bitcoin supply last being active in three to five years has grown by 1.5 million BTC since the middle of May 2020. This suggests that long-term holders still accumulate bitcoin, not seeking to sell at these current prices," according to Arcane Research.
- The three-to-five-year active supply metric started to decline at the end of previous bull market in 2017 as bitcoin's price accelerated towards $19,000.
- The three- to five-year active supply is approaching the highs of 2017.
- Since 2019, the growth of in the three- to five-year active supply indicates confidence among long-term holders.
- On the flip side, the decline in active supply of the six-month and two-year segments indicate short-term holders have realized profits during the past year's price rally, according to Arcane Research.
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