The uncertainty associated with geopolitics and the Fed rate has weakened the accumulation of bitcoins by hodlers. Given the high proportion of “unprofitable” coins among short-term holders, a final capitulation is not ruled out, according to a Glassnode report.
#Bitcoin Long-Term Holders are accumulating at an annualized rate of over 12% of circulating supply per year.
This is 7.6x more than is being mined by miners.
We also introduce a new metric in collaboration with the great on-chain mind of @dpuellARK https://t.co/uX9clpisIf
— _Checkmate 🔑⚡🦬🌋 (@_Checkmatey_) March 14, 2022
Analysts have found an increase in sales by long-term Bitcoin investors. The share of coins “aged” from six months and above increased to 5%, which was uncharacteristic for the previous few months. Under the current conditions, this cannot be interpreted as a sign of a loss of hodlers’ confidence, experts emphasized.
The Coin Days Destroyed metric, which takes into account the movement of the “oldest” coins, still points to the accumulation of bitcoins as the preferred behavior.
Analysts noted that before the end of the previous bearish cycles, the final capitulation of the bulls followed. They did not rule out a repetition of a similar scenario in the future.
Short-term investors (with a position holding period of less than 155 days) can act as sellers. 82% of the bitcoins they own (2.51 million BTC) are “unprofitable” at the current price.
The share of BTC less than 6 months old hit an all-time low of 24.53% of total supply, according to the HODL wave metric. In other words, every three out of four coins are without movement for more than half a year, despite the market turbulence in recent months.
An additional encouraging factor, according to experts, is a sharp outflow of bitcoins from Coinbase wallets. It amounted to a record 31,130 BTC ($1.18 billion) since July 28, 2017. The balance of the bitcoin exchange eventually fell to 375,500 BTC or 36.6% of ATH in April 2020.
“This is a strong signal that investors are increasingly looking at bitcoin as a relevant asset in modern portfolios.”experts summed it up.
Recall that the head of the DeVere Group predicted the growth of bitcoin to $50,000 during March.
Earlier, Elon Musk announced the hodling of cryptocurrencies in anticipation of rising inflation.
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