As a seasoned Bitcoin investor with several years of experience under my belt, I find the recent trend reversal among long-term holders to be an intriguing development. The data showing that LTHs have absorbed $8 billion worth of tokens in the past few months is a bullish sign for me.
Long-term Bitcoin holders have recently changed course based on on-chain data, having taken possession of approximately $8 billion in tokens.
Bitcoin HODLers Have Gone Back To Net Accumulation
According to a recent post by Axel Adler Jr on X, the investors who have possessed Bitcoin for over 155 days have been progressively adding to their stockpile. In simpler terms, these are the individuals who have held onto their Bitcoins for longer than six months.
The market for Bitcoin is divided into two primary groups based on holding duration. One group consists of these holders, while the other is referred to as “short-term holders” (STHs).
Based on statistical analysis, investors who keep their coins for extended periods are less inclined to sell. Consequently, long-term holders (LTHs) can be characterized as the persistent or unyielding segment of the crypto market.
Based on my extensive experience in the financial markets, I can tell you that the group I’m referring to isn’t known for making hasty decisions or giving in to market pressure, even during significant price movements like rallies or crashes. However, this year’s market rally was an exceptional event that even the most patient and committed investors, often referred to as “diamond hands,” found hard to resist. With profits pouring in left and right, it was a rare opportunity to secure substantial gains that no one wanted to miss out on, regardless of their usual investment strategies.
Based on the chart presented by the analyst, it appears that long-term Bitcoin holders collectively decreased their total supply as the price reached a new record high.
Bitcoin investors, who had previously hesitated in selling during the price dip, resumed their selling in a significant way once the cryptocurrency reached a rebound at $68,000.
Following the selling spree, the amount of BTC held by these investors decreased to 14,431,517. However, the trend has since changed as shown in the chart, with the metric now at 14,557,609 BTC – a rise of approximately 126,092 BTC. This equates to around $8.1 billion based on current exchange rates.
A useful point to keep in mind is that when the Long-Term Holders (LTH) supply shows an uptick, it doesn’t necessarily mean they are purchasing currently. Instead, this trend indicates that there were previous purchases made around five months ago, and those coins have since reached maturity and become part of this specific group.
In the realm of Bitcoin trading, a coin’s history is erased once it’s transferred on the blockchain. Consequently, it vanishes from the Long-Term Holder (LTH) inventory, making each transaction fresh and new.
The latest resurrection of the upward trend in the indicator might signal that the dedicated investors have ceased selling and have resumed holding. If correct, this development could be a bullish indication for the cryptocurrency market.
BTC Price
Yesterday saw a downturn for Bitcoin with its value dipping over 3% and currently hovering around the $64,600 mark, as depicted in the following chart.
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2024-07-26 13:11