# Bitcoin’s recent price drop hasn’t shaken long-term HODLers’ conviction of the crypto’s potential

By Mark Jason Alcala

Canonical URL: https://www.tokenpost.com/news/investing/9437
Published: 2021-12-31T02:35:26.000Z
Updated: 2021-12-31T02:35:26.000Z
Section: Insights & Views

> Long-term holders increased their Bitcoin holdings by 1.846M BTC since the year started.

After posting a new all-time high above $68,000 last month, Bitcoin was not able to sustain its upward momentum and decline sharply by around 30 percent. However, data from analytics firm Glassnode show that long-term holders of the crypto remain undeterred by the sharp price drop and have only marginally tripped their BTC positions.

Bitcoin set a new all-time high on November 10, 2021, when it traded at $68,990.90. However, the crypto decline since then at BTC traded at $47,514 at the time of writing based on [Coindesk](<https://www.coindesk.com/price/bitcoin/>) data. This means that Bitcoin has fallen by $21,476 or around 31.1 percent from its all-time high.

But the sharp price decline has not deterred long-term holders of the crypto. Glassnode data revealed that supply held by investors dropped from 13.4 million BTC to 13.3 million BTC, considered only a [marginal change](<https://www.coindesk.com/markets/2021/12/28/bitcoin-long-term-holders-stay-strong-despite-20k-drop-from-last-months-high/>) considering the steep decline of Bitcoin’s price.

However, long-term holders actually increased their Bitcoin holdings since the year started. “Long-Term Holders added 1.846M BTC to their holdings, bringing their total stack to 13.33M BTC,” [Glassnode](<https://insights.glassnode.com/the-week-onchain-week-52-2021/>) noted. “This reflects an increase of 16% over the year.”

Meanwhile, short-term Bitcoin holders decreased their holdings during the same period. “Short-Term Holder supply has declined by 1.428M BTC, with this cohort currently holding 3.01M BTC,” Glassnode said. “This reflects a decline of 32% on the year.”

Glassnode said that this transfer from short-term to long-term holders despite multiple ATHs is a period of modest accumulation and macro consolidation. “Such on-chain behavior is more typically observed during Bitcoin bear markets, which in hindsight are effectively lengthy periods of coin redistribution from weaker hands, to those with stronger, and longer-term conviction,” the firm added.

The fact that some long-term holders have not touched their crypto holdings in over five years indicates that they remain steadfast in their conviction of Bitcoin’s future potential. “Over 23% of bitcoin’s 21 million supply remaining untouched in the period, as per other metrics tracked by Glassnode,” [Coindesk](<https://www.coindesk.com/markets/2021/12/28/bitcoin-long-term-holders-stay-strong-despite-20k-drop-from-last-months-high/>) pointed out.

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## Links in this article

- [Coindesk](https://www.coindesk.com/price/bitcoin/)
- [marginal change](https://www.coindesk.com/markets/2021/12/28/bitcoin-long-term-holders-stay-strong-despite-20k-drop-from-last-months-high/)
- [Glassnode](https://insights.glassnode.com/the-week-onchain-week-52-2021/)
- [TokenPost](https://www.tokenpost.com)