In recent months, the accumulation of Bitcoin (BTC) has been on the rise, supported by the increasingly enthusiastic long-term “HODL” mentality of investors.

Ambcrypto reports on this trend, citing the Liveliness metric, which tracks the behavior of investors holding BTC for the long term.

According to a recent post from Glassnode on the social platform X, Bitcoin Liveliness has dropped to its lowest point in the past two years.

This metric, which ranges from 0 to 1, has been steadily declining since the crypto winter of 2022, coinciding with the FTX collapse and Bitcoin dropping below $16,000.

“For those unfamiliar, Liveliness is the opposite of Bitcoin held (HODL). Therefore, lower Liveliness implies that Long-Term Holders (LTH) are accumulating in size,” explained the crypto media in a recent article.

“On the other hand, higher Liveliness would indicate that this cohort is aggressively selling their assets.”

The motivation behind these investors is to avoid quick riches from speculative trading and view BTC as a long-term wealth storage and potential hedge during economic downturns.

This trend has proven resilient, even amid the enthusiastic price surges in 2023, as the HODL sentiment continues to strengthen.

In Ambcrypto’s analysis, Bitcoin’s resilience during the US banking crisis in March, protection from the watchful eyes of US regulators, and the upcoming halving event have all prompted investors to reevaluate BTC’s long-term growth potential.

Another notable sign of Bitcoin’s growing status as a wealth storage vehicle is the increase in inactive supply.

Various age groups of BTC ownership have recorded increased HODLing activity. Specifically, the portion of crypto supply held for at least two years has reached 56 percent, while that which hasn’t been transacted on-chain for at least three years stands at 40 percent.

Whales Accumulate BTC

Ambcrypto further notes that large-scale investors, often referred to as “whales,” also seem to be refraining from interacting with exchanges.

Transfer volumes involving significant amounts of BTC have decreased, indicating that whales are accumulating their assets.

The Exchange Whale Ratio, which measures the relative size of the top 10 inflows to the total inflows on exchanges, currently stands at 0.42, meaning that whales’ share of the total exchange inflow is only 42 percent.

Whales’ reluctance to bring their holdings to exchanges has resulted in a sharp drop in exchange deposit amounts on-chain.

In fact, transfers to exchange addresses have reached a three-year low, according to Glassnode data.

With these trends in mind, it’s clear that HODLing has become the dominant sentiment in the BTC market. The steady increase in the number of addresses holding positive BTC balances is evidence of this narrative.

This news is only analytical and informative and is not a recommendation for investment in any way.