Crypto Gloom

Bitcoin investors demonstrated long-term holding resilience in 2021.

quick take

Data shows that the 2021 cohort of Bitcoin investors – those who bought Bitcoin in the heat of 2021, which reached highs of over $60,000 in the first quarter – have an impressive holding record.

After three years, they are typical of long-term holdings in an often volatile market. The percentage of circulating supply that has been stagnant for at least three years is noteworthy. Approximately 45% of total circulating supply has not seen any movement in at least three years.

As we progress and close this quarter, we expect this percentage to increase further, demonstrating the incredible resilience of this group.

Last active supply 3+ years ago: (Source: Glassnode)
Last active supply 3+ years ago: (Source: Glassnode)

Interestingly, the cohort’s cost basis, realized prices, declined dramatically during the bear market. Initially, realized purchase costs peaked at a respectable $47,000 in the first quarter of 2021, but steady purchases through the market downturn have reduced the cost basis to $35,000. In November 2023, the group experienced its first revenue since the fourth quarter of 2021.

Average exchange withdrawal price, 2021 cohort: (Source: Glassnode)
Average exchange withdrawal price, 2021 cohort: (Source: Glassnode)

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