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According to Glassnode’s most recent on-chain investigation, Bitcoin’s most loyal holders, commonly called “diamond hands,” are not only holding firm, but they are also becoming older. The company’s data shows that the Realized Cap for Bitcoin held for 5–7 years has dropped sharply, from $14.9 billion to $8.5 billion over the previous 12 months. This is a sign of the strength of long-term investors. This change doesn’t mean that a lot of people are selling; instead, it shows that coins are getting older and older, with some now in age groups of 7–10 years or over 10 years.
This shows that the market is driven by long-term conviction rather than short-term speculation. Bitcoin is trading at roughly $112,400 as of September 13, 2025, which is about 3% more than it was a week ago. This is because of the underlying strength. This pattern is happening as the market matures, with illiquid supply reaching all-time highs and exchange reserves running low. If demand rises, this might lead to higher prices.
The Growth of Bitcoin’s Diamond Hands
Using Realized Cap HODL Waves, a measure that shows the realized value of coins based on their recent movement, Glassnode’s analysis looks at the age distribution of Bitcoin holdings. The drop in the 5-7 year group isn’t because a lot of people are selling their assets; it’s just that assets are naturally “graduating” into veteran groups. Over the course of the year, about $6.4 billion in value moved from this group to older bands. The combined Realized Cap for holders who have held their investments for more than five years has actually gone up, showing that determined investors have continued to buy more.
This event shows how the number of people who own Bitcoin is changing. People who got in on the 2017-2018 bull run and later are becoming more set in their ways, seeing BTC as a long-term store of wealth like digital gold. These diamond hands have not changed, even if the price has gone up and down. Bitcoin reached its highest point of $124,457 in August 2025 before correcting. They are more interested in HODLing than making money. Glassnode says that transaction activity from the 5-7 year group is still low, with only a few sales happening in a stable market.
Selling Only Certain Items and Slowing Down Distribution
Even while the main story is about holding, not all long-term holders (LTHs) are safe from changes in the market. According to Glassnode data, the 5–7 year cohort has sold roughly 385,000 BTC so far this year. This is a small number, which means they are not selling in a panic but rather to take profits. This fits with what has happened in past cycles, when LTH distribution surges at local highs but then goes down as new buyers take in supply.
The 3–5 year group, which now owns 11.9% of Realized Cap, has noticeably slowed down its selling pace, waiting for prices to go up before selling more. Recent on-chain data from CryptoQuant backs this up. It shows that the net LTH position has dropped by over 183,000 BTC in the previous 30 days, with an 8,000 BTC jump in a single day in early September—the biggest since January. But this hasn’t hurt overall trust; spot Bitcoin ETFs have been steady absorbers, which is a change from previous cycles.
On X, people are talking about Glassnode’s findings in a way that shows how strong they are. The Indonesian news site @satechainmedia talked about the pattern and how it makes Bitcoin stronger in unstable markets. CryptoSlate and other analysts say that these kinds of selective sales usually mean that local peaks are turning into consolidation, not cycle exhaustion.
Record low supply and falling exchange reserves
The liquidity profile of Bitcoin is a big part of this positive trend. Glassnode says that the amount of coins that aren’t being traded—coins that haven’t moved in a long time—has reached an all-time high of 14.3 million BTC, or 72% of the total supply. Even more shocking, the number of coins that have been inactive for more than 155 days reached 14.7 million BTC, the largest ever. This shows that the market is becoming more and more locked up.
Centralized exchange reserves have dropped sharply, which has lowered the amount of sell-side pressure that is easily available. This lack of supply is similar to other bull markets, but it is stronger now because of institutional inflows through ETFs, which have made billions in 2025. With elder cohorts now making up more than 30% of the supply that has been inactive for more than five years, the market’s structure promotes stability over volatility.
Long-Term Trends and What They Mean for the Market
Diamond hands getting older shows that the Bitcoin ecosystem is growing up, with a lot of support coming from senior investors, many of whom have been around since before 2020. This change from the 5–7 year band to the 7–10+ year band makes the market more stable because these holders are less likely to sell during corrections. Glassnode’s larger insights into Realized Cap growth (2.1x this cycle so far) show that Bitcoin is becoming a capital-intensive asset, with institutional demand making up for any LTH distributions.
This means that the market has less risk of going down because of too much supply. With low exchange reserves and supply that isn’t very liquid at its highest points, any rise in demand—maybe because of regulatory tailwinds or changes in the economy—could cause upward pressure. Analysts say this HODLing tendency will help Bitcoin reach $120,000 or more by the end of the year, but short-term changes are still possible.
In conclusion
The most recent statistics from Glassnode shows that long-term confidence in Bitcoin is still strong, as diamond hands become ever strongly entrenched. The 43% reduction in 5-7 year Realized Cap shows that the market is maturing, not giving up, even when there is record illiquid supply and selective selling. This structure makes the market more stable by lowering risks for sellers and putting BTC in a good position to make money as demand grows. For investors, this is a reminder that Bitcoin is still a good long-term investment. However, it’s still important to diversify and keep an eye on on-chain data to deal with volatility. As the cycle goes on, these long-time holders could be quite important in keeping the bull story going.
