Over the past week, long-term Bitcoin holders have increased their spending to a level that suggests they have shed the market, but the holding company remains the predominant investment strategy.
Uncertain macroeconomic headwinds are likely to have precipitated last week’s surge in selling by long-term holders and shook some short-term holders out of their positions., according to data from blockchain analytics firm Glassnode. Last week, coins older than six months accounted for 5% of total spending, a level not seen since last November.
Short-term holders (STHs) that have held coins for less than 155 days are still declining in number, but not necessarily due to selling. Glassnode suggests that, although it is generally more common for STHs to sell, the recent decline in STH supply “can only occur when large portions of the coin supply are inactive and cross the 155-day age threshold, becoming Long-Term Holders supply.” “.
Bitcoin (BTC) Accumulation Patterns Still Not Suggesting Bear Market Behavior as Overall Selling Pressure Remains Consistent. Furthermore, over 75% of the BTC supply in circulation has been dormant for at least six months despite the recent spike in sales. Glassnode says that this is an indication that investors are still predominantly hodlers.
Glassnode notes that the selling has come in a relatively strong market that has avoided any significant move up or down and has remained range bound for most of this year. This is believed to be preventing a capitulation that usually occurs at the end of a bearish cycle. There has been no significant capitulation since May, when the price of BTC crashed from $58,771 to $34,977 over the course of a 15-day period.according to CoinGecko.
The period from the capitulation event in May to October marked the last time BTC accumulation resembled bear market behavior.
The STH supply win/loss ratio remains close to the all-time low set in mid-2021. Currently, 82% of STH coins remain at a loss, which Glassnode says is an indication of the latest phase of a bear market.when savvy investors send their coins to cold storage to wait for a return to positive profit margins.
As noted in last week’s BTC market update, exchange outflows are still quite high. Coinbase saw its biggest outflows in nearly five years last week; 31,130 BTC left the exchange. These outflows illustrate bitcoin’s growing reputation as a must-have item in a modern investor’s portfolio.and a greater reluctance to liquidate in a hurry.
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