Long-term Bitcoin Holders Accumulate $10B as Price Dips Below $60K

Long-term Bitcoin holders have collectively invested a notable $10 billion in acquiring the cryptocurrency and have been holding back on selling as the asset’s value continues to drop from its 2021 peak, according to an analysis.

Long-term holders less likely to panic-sell

“For the first time, the realized capitalization of long-term holders has surpassed $10 billion,” Amr Taha, a contributor at CryptoQuant, highlighted in a post dated August 27.

The realized capitalization considers the price at which each Bitcoin was last sold. Bitbo, a crypto analytics firm, states that this metric is “often compared to Market Cap to gauge the overall market sentiment.”

Long-term holders are those who maintain their Bitcoin for over 155 days. Taha noted that after surpassing this 155-day threshold, “the probability of selling drops significantly, making these holders less inclined to sell during brief market fluctuations.”

Since Bitcoin began a 29-day period of trading below $69,000 starting July 30, the pressure to sell from long-term holders has “reduced by 3.7 times,” according to Axel Adler, another CryptoQuant contributor, on August 27.

As of August 28, Bitcoin was trading at $59,404, reflecting a 5.47% drop over the past 24 hours. The cryptocurrency saw a slight decrease of 0.11% over the week, after reaching a high of $64,791, as per CoinMarketCap data.

Current Bitcoin prices are approximately 8% lower than the average purchase price of $64,490 that long-term holders paid, based on information from ChainExposed.

Nevertheless, many in the crypto community speculate that Bitcoin’s price could decline further, leading long-term holders to continue waiting for more favorable conditions to take profits.

“Bitcoin will pull back deeply enough to make you believe the Bull Market is finished,” noted the pseudonymous trader Rekt Capital.

Many traders identify the $50,000 mark as a critical support level; a drop below this could push Bitcoin into a zone of uncertainty.

This follows a report from Glassnode in June, which revealed that roughly 75% of all Bitcoin in circulation hasn’t been moved in the last six months or more.

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