As HODLERS accumulate more Bitcoin, the majority of BTC transactions with values more than $1 million have skyrocketed, indicating an increase in institutional engagement in the cryptocurrency market. 

Even after a 50%-plus negative correction earlier this year, institutions have not abandoned the Bitcoin (BTC) market.
<h2>As HODLERS Try to Accumulate More BTC A Million Transactions Skyrocket</h2>
According to the blockchain analytics platform, the <a href="https://www.cryptoknowmics.com/news/100000-pretty-reasonable-year-end-target-for-bitcoin-fundstrats-tom-lee/">dominance</a> of Bitcoin transactions above $1 million has skyrocketed twice since September 2020, from 30% to 70% of total value moved.

Because individual investors do not generally engage in large-volume transactions, Glassnode believes institutional investors or large HODLERS are to blame for the increase in the $1 million-$10 million transaction category.

Furthermore, the company stated that the Bitcoin network handled the aforementioned bulky transactions when the BTC/USD exchange rate fell from $65,000 to below $30,000 in the second quarter of 2021.
“As the market traded down to lows of $29k in late July, the $1M to $10M transaction group skyrocketed, gaining dominance by 20%,” Glassnode <a href="https://insights.glassnode.com/the-week-on-chain-week-32-2021/" target="_blank" rel="nofollow noopener">stated </a>in a Monday report.
“This implies that these large-scale transactions are more likely to be accumulators than sellers, which is, once again, pretty price constructive.”

<h2>Small Transactions Lose Their Significance</h2>
Glassnode supplied further volume statistics, indicating a structural reduction in small-size transaction dominance.

In particular, transactions of less than $1 million decreased by half, from 70% in September 2020 to 30%–40% dominance in March-May 2021. 

The losses indicate that tiny investors sold their Bitcoin holdings to secure early returns.

During the mid-May crypto market <a href="https://www.cryptoknowmics.com/news/cathie-wood-criticizes-elon-musk-and-esg-for-latest-crypto-crisis/">crisis</a>, dominance dropped to almost 20%, then returned to the 30-40% range as Bitcoin's price stabilized above the $30,000 support level. 

During the current run-up to heights above $46,000, it remained within the stated percentage range.

“[The data] indicates a new age of institutional and high net worth wealth has been pouring over the Bitcoin network since 2020,” Glassnode stated.
<h2>HODL Sentiment Returns </h2>
Glassnode data, which tracked investor hodling activity, provided more proof of Bitcoin accumulation.

According to the indicator “Long and Short Term Holder Supply Ratios,” the Bitcoin supply controlled by long-term hodlers (LTH) achieved an all-time high of 82.68%. 

Meanwhile, the supply of short-term holders (STH) has continued to fall, reaching 20%, indicating that hodling and coin maturation is at work.

When the STH supply ratio exceeds 20%, Glassnode predicts a severe supply squeeze, i.e., a supply shortfall that generally drives the underlying asset's price upward.

Who will collect the remaining 5% of the adjusted supply? 

According to the Glassnode measure, coins aged one week to three months account for a significant percentage of the liquid supply.

HODLERS Gather More Bitcoin As Transactions Above 1M Skyrocket

HODLERS are gathering Bitcoin and transactions worth more than $1 million have skyrocketed year on year, indicating greater institutional engagement in the crypto market.

Kavya Barua is a voracious learner who is fascinated by crypto and Fintech advancements. Graduated from Janki Devi Memorial College's B.A (Hons) English program at the University of Delhi. She aspires to be a successful professional, having a keen interest in learning and achieving results.

HODLERS Gather More Bitcoin As Transactions Above 1M Skyrocket

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