Glassnode | Hodlers of bitcoin and ethereum refuse to sell
Glassnode | Hodlers of bitcoin and ethereum refuse to sell Glassnode | Hodlers of bitcoin and ethereum refuse to sell

A glance at some on-chain

patterns can provide insight into broader market sentiment. Based on Glassnode’s analysis, it appears that BTC and ETH holders remain reluctant to sell their digital coins.

In their weekly report, Glassnode analysts analyzed the hodl wave situation. The indications seem to be bullish. There has been a structural downward trend in the context of younger coin sales, indicating more appetite for HODL

.

The study notes that the supply dynamics and maturity dimension of the coins provide a fairly strong signal in both directions.

Constructive Hodl

Waves Both the hodl waves for bitcoin and ethereum have, over the past 4 months, shown a clear downward trend. Glassnode highlights that owners of coins younger than 3 months are likely to sell during periods of increased volatility.

The

drop in hodl waves for these young coins would indicate that the market prefers to hold assets rather than spend them.

“Young BTC now accounts for only 15% of the coin supply and we are facing a very strong downtrend.”

bitcoin hodl waves source: Glassnode

On the ethereum chart, the situation is very similar. Young ETH represents just 12.5% of the circulating supply.

Glassnode points out that users who bought their coins between 3 months and 1 year are statistically less likely to spend them.

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Bitcoin is facing a massive uptrend in coin maturity, with nearly 50% of the coin supply aged between 3 months and 3 years.”

Analytics complemented these findings with what has been termed a “longevity metric.” It analyzes whether more coins are accumulated (HODLing) or destroyed

(spending) relative to the total supply dimension.

This ratio has been trending downward since June, suggesting less spending and more coin dormancy. A similar scenario played out for ethereum.

Non-zero bitcoin balances

Another indicator with a pro-growth sentiment is the number of non-zero bitcoin addresses, which has been steadily increasing

. Currently, there are more than 38 million bitcoin addresses with balances that are close to the record high in May.

The same happened with Ethereum, which reached a new all-time record of 60.7 million addresses in this aspect.

The supply dynamics seem to suggest that there is extremely strong underlying demand, which should be quite constructive for the price upside outlook if the trend continues.”

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From the Editor

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