TL;DR
- Bitcoin investors are increasingly willing to hold their assets, according to data from Glassnode.
- Bitcoin reserves on centralized exchanges have decreased significantly since 2023.
- Institutional adoption of Bitcoin has grown by 30% in the past year, according to a report by River Financial.
The tendency to hold Bitcoin for the long term has reached new highs, according to the latest data from Glassnode, a blockchain analytics platform.
This information reveals that the illiquid Bitcoin supply, which represents the amount of stored assets that are not available for sale, has been growing steadily for months.
This trend indicates a bullish sentiment among investors, who prefer to hold their coins rather than sell them, which reinforces the positive perception towards the future of the cryptocurrency market.
Glassnode data also points to a decline in the active supply of Bitcoin, that is, the amount available on exchanges for short-term buying and selling.
At the same time, the supply held by long-term investors has shown a significant increase since the beginning of the year. These figures suggest a change in the mentality of Bitcoin enthusiasts, who are increasingly opting for a “HODLing” or long-term accumulation strategy, avoiding market volatility.
The information provided by Glassnode was also highlighted by Crypto Banter, who mentioned that this “HODLing” behavior could be a sign of a future rise in the value of Bitcoin.
According to another analysis from CryptoQuant, Bitcoin reserves on centralized exchanges have seen a considerable drop since November 2023, currently reaching an all-time low of 2.64 million coins.
A decrease in exchange reserves is often interpreted as a sign of low selling pressure, which could stabilize or even increase prices in the near future.
This reduction in exchange balances correlates with the increase in stored supply, indicating that investors are choosing personal custody methods to protect their assets.
Growth of institutional adoption of Bitcoin
In addition to the increase in Bitcoin (BTC) accumulation by individual investors, institutions are also showing growing interest in this cryptocurrency.
A recent report from River Financial revealed that institutional adoption of Bitcoin has increased by 30% in the past year and has grown by an impressive 587% since 2020.
Businesses and institutions now control more than 3% of all Bitcoins in circulation, using this asset as a tool to diversify their portfolios and protect against inflation.
The growth in institutional interest has also been reflected in the increase in positive flows into approved Bitcoin ETFs in the United States.
According to data from SoSoValue, these funds recorded positive flows worth $273.71 million on October 18, accumulating a total net asset value of $66.11 billion.
This trend shows a consolidation in the interest of large investors towards cryptocurrencies as a long-term investment option .
