As a seasoned analyst with decades of experience observing and analyzing the volatile world of cryptocurrencies, I find myself intrigued by the recent surge in Bitcoin accumulation by long-term holders (LTHs). Given my years of navigating market upheavals, it’s clear to me that these LTHs are displaying a steadfast confidence in Bitcoin’s potential, even amidst short-term volatility.
As the crypto market faces volatility, an intriguing fact has emerged about major Bitcoin holders.
As reported by CryptoQuant, a significant number of long-term Bitcoin owners have added approximately 262,000 Bitcoins to their holdings during the last month. This accumulation has now brought their combined Bitcoin holdings to a substantial 14,820,000 BTC. Interestingly, this amount makes up about 75% of the entire Bitcoin supply in circulation.
As an analyst, I’d rephrase that as: “I refer to those who hold Bitcoin for lengthy durations without cashing out even during market turbulence as Long-term Holders (LTHs). The fact they amassed 262,000 BTC in a single month underscores their steadfast faith in the cryptocurrency despite short-term market volatility.”
Currently, the buildup among long-term investors is providing a supportive setting amidst the current wave of profits being taken out from the cryptocurrency market.
1. Despite an increase in investments into U.S. exchange-traded funds related to Bitcoin, the digital currency saw its most significant drop since the worldwide market turmoil in early August. This decline is part of a larger trend affecting the cryptocurrency market. Fears about potential sales of seized tokens by the U.S. government are among the hurdles being faced by the market.
Bitcoin price drops
Yesterday, I witnessed a significant dip in the value of my Bitcoin investment, plummeting approximately 6%. This was the steepest decline since August 5th. However, it managed to recover some of its losses, leaving me with a current price of around $60,162 at press time. Despite this recovery, I’m still looking at a 5% decrease in value for the day.
In the past two days, Bitcoin has dropped by approximately 10.8%, falling from peaks of around $65,062 to troughs of $58,025. This decline seems to be due to Short-Term Holders setting a resistance level at the price where they initially broke even.
Around a few weeks ago, the value of Bitcoin dropped significantly. As per CryptoQuant’s analysis, this decline caused a 17% loss for investors holding Bitcoin in the short term. Since the price went back to its average purchase price, these investors were able to sell at even value, leading to resistance.
Lately, a decline happened due to traders betting on escalating costs, leading to a precarious situation. Since August 5th, Open Interest has surged by 31%, climbing from $13.5 billion to $17.9 billion. Meanwhile, funding rates continued to stay positive, suggesting that there is a premium for long-term contracts.
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2024-08-28 14:24