Bitcoin's "Diamond Hands" Hold Steady Above $100K

Bitcoin's long-term holders, often referred to as "diamond hands," are sending bullish signals as the cryptocurrency maintains its position above $100,000. According to on-chain data analysis by CryptoQuant community author Crypto SunMoon, these holders are not rushing to sell their Bitcoin, even as the price continues to rise.

Historically, long-term holders have started selling their Bitcoin riches just before the end of a bullish phase. However, the latest data shows that these holders are not yet sending their holdings to exchanges in significant numbers. The last major inflows driven by long-term holders were registered in late Q1, 2024, and were not as impressive as those seen during the previous all-time high in November 2021.

Similar trends are observed in other major cryptocurrencies. For instance, over 70% of both Ethereum (ETH) and Litecoin (LTC) owners have been holding their riches for at least 12 months. This demonstrates a high level of confidence among long-term holders in the ongoing crypto rally, while the selling pressure primarily comes from short-term holders, or "paper hands."

Meanwhile, stablecoins like USDT and USDC are showing optimistic metrics for Bitcoin bulls. In the last three months, USDT supply on centralized exchanges (CEXes) has increased by 40% and reached an all-time high of over $43 billion. The aggregated supply of stablecoins has also grown significantly, from $160 billion to $224 billion since early November 2024. This growth is often seen as a sign of a prolonged bull market for Bitcoin and major altcoins.