
Long-term Bitcoin storage addresses, often associated with "HODLers," play a significant role in forming a critical price support layer in the network. These addresses, holding substantial BTC quantities for extended periods, reduce circulating supply, creating scarcity that can bolster price stability during market downturns. Data from on-chain analytics, like Glassnode, shows that long-term holders (LTHs) typically accumulate during bear markets and hold through volatility, acting as a psychological and economic floor. Their reluctance to sell, even at high prices, signals strong conviction, reinforcing support levels. For instance, addresses dormant for over a year often correlate with key price bottoms, as seen in historical cycles (e.g., 2018 and 2022). However, this support isn't absolute—extreme market events or regulatory shocks can trigger capitulation. Still, the growing share of illiquid supply in these addresses strengthens their role as a foundational layer for Bitcoin’s long-term price 0 reply
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