Long-term Bitcoin investors apparently do not sell despite the record levels seen in 2021, while inexperienced investors are making a profit.
2021 saw an increase in both long and short-term activity, according to the “Hodl waves” chart, which depicts when Unchained Capital’s BTC wallets were last active on-chain.
According to the chart, the number of coins that have been moved in the last 30-90 days has risen to the highest level seen since 2018. These addresses represent 15 percent of the total and are currently the largest group of BTC wallets.
The second largest group consists of wallets that have been inactive for the past 3-5 years, with 13.5 percent. The number of these wallets also increased throughout 2021. Those who viewed the chart think that the bulk of this group were those who bought BTC during 2017 and kept their savings throughout the bear market.
While the rate of inactive addresses for the last 5-10 years has decreased over the past year, the rate of the number of addresses that have not been active for at least 10 years, which was 1.7 percent two years ago, has increased to 10.7 percent today.
Glassnode Co-Founder and CTO Rafael Schultze-Kraft shared data in his March 11 post revealing that the number of inactive wallets has steadily increased since the end of December for the last 3-5 years.
1+ year hodlers: selling
2+ year hodlers: selling
3+ year hodlers aka “been in a bull market before and know how this works”: stacking sats#Bitcoin
Chart: https://t.co/7VRnyrWbaD pic.twitter.com/MsnZptKxGF
– Rafael Schultze-Kraft (@ n3ocortex) March 10, 2021
On the other hand, the rate of Bitcoin wallets that have been inactive for at least 12 months, reaching the highest rate of 65 percent in January, has declined to 55 percent as of today.