Bitcoin (BTC) Holders Who Purchased During the 2020-2021 Price Discovery Period Are Not Selling

The data shows that buyers from this period, whose cost basis ranges from the 2020 low of $3600 to the 2021 high of $69000, have not been motivated to sell

The cryptocurrency market has seen its fair share of ups and downs, especially in recent times. As the market continues to navigate this volatile landscape, a new report by Glassnode sheds light on the interesting behavior of Bitcoin buyers from 2020 to 2021. Despite the cryptocurrency's price ranging from a 2020 low of $3,600 to a 2021 high of $69,000, these buyers have shown no signs of being in a hurry to sell.

Despite a 3% decline in the share of wealth held by these investors from its November 2024 peak, it remains at historically high levels. This suggests that most of these buyers are still in the game and aren’t planning to exit anytime soon.

In contrast, investors who purchased Bitcoin five to seven years ago, capitalizing on their lower cost basis, had exited their positions by December 2024.

Glassnode’s findings highlight that long-term holders have been steadfast in retaining their Bitcoin, while newer investors have shown more sensitivity to price changes. This is evident as Short-Term Holders (STHs, defined as those holding coins for less than 150 days) increased their selling pressure in December 2024.

Over the past six months, Bitcoin's price has reached new all-time highs and dropped by as much as 30%, which might lead one to expect significant panic selling. However, the level of speculative behavior is much lower compared to past market tops.

Glassnode pointed out that STH participation, a measure of speculative behavior, peaked at nearly 50% earlier in 2025. However, it remains significantly lower than previous cycle highs, where it soared above 70% to 80% during the 2013 and 2017 market peaks. This finding indicates a more tempered market.

Additionally, Bitcoin exchange inflows have dropped to a two-year low, signaling that fewer investors are selling or moving their assets from one exchange to another. Despite the price surges earlier in 2025, many holders from 2020 have chosen to “HODL,” suggesting a shift away from short-term speculation toward long-term investment strategies.

The data from Glassnode further shows that the market is not experiencing the same kind of speculative frenzy that typically accompanies price surges near cycle peaks. This is a stark contrast to previous cycles, which saw a different narrative emerge.

Glassnode's report showcases a more measured market behavior compared to past Bitcoin cycles, where speculative trading drove rapid market corrections, and market cycles were defined by strong macroeconomic trends.

The research suggests that while Bitcoin remains fundamentally volatile, its current market dynamics are less driven by speculative actions and more focused on long-term holding. This shift in market structure is a testament to the evolving nature of cryptocurrency investment.