As a seasoned researcher with extensive experience in analyzing cryptocurrency market trends, I find the recent development in Bitcoin’s investment landscape particularly intriguing. Based on my analysis of CryptoQuant’s data and insights from our expert analyst Axel Adler Jr., I believe that we are witnessing a significant shift in investor sentiment towards holding onto their Bitcoin (BTC) rather than selling it.
Recently, Bitcoin, the leading cryptocurrency, has seen a surge in optimism among investors. Axel Adler Jr, an analyst at CryptoQuant specializing in research and data, has observed a decrease in the eagerness of investors to sell their Bitcoins. This trend suggests that confidence is growing among investors regarding potential further gains in Bitcoin as the market recovers significantly.
Waning Bitcoin Selling Pressure From Investors
According to Axel Adler Jr, an analyst at CryptoQuant, there’s been a shift in sentiment among Bitcoin holders. This is evident in his most recent research, which shows that more and more holders are opting to hang on to their BTC rather than offloading it during market upswings.
As an analyst, I’ve observed that Bitcoin has evolved into a significant investment asset beyond just being a means of exchange in recent years. This development suggests the potential of the digital currency. Notably, this perception seems to be boosting confidence in Bitcoin, as evidenced by a noticeable decrease in the number of BTC deposit addresses on exchanges. The latest on-chain data reveals a low of approximately 25,000 addresses.
Adler observed that the decrease in Bitcoin deposit addresses to 25,000 is a significant sign indicating a shift in investing strategy among Bitcoin holders. With the recent market upturn, this reduction implies that many investors are planning to keep their Bitcoins, anticipating potential price growth in the future.
From a behavioral economic viewpoint, Adler proposes that the current Bitcoin trend may signal growing investor confidence. This confidence is fueled by various elements, including the increasing institutional investment in cryptocurrencies.
I, as an analyst, view this trend as a positive development that could lead to substantial price growth for Bitcoin. The decreasing urge among investors to offload their Bitcoin holdings implies fewer coins will be up for grabs in the market. Consequently, I believe this is a bullish indicator for the market, suggesting anticipation of increased future values.
Veteran Holders Are Holding On To Their BTC
Ki Young Ju, the CEO and founder of CryptoQuant, has observed this trend predominantly among long-term Bitcoin (BTC) investors, specifically those who have held BTC for over three years. As the crypto market shifts towards a bullish trend, Ju believes that it is newer investors, or those who have held BTC for less than three years, who are more likely to be selling their Bitcoin. Conversely, veteran investors with longer holding periods are more inclined to hold onto their investments.
Based on Ju’s findings, it appears that investors who had held Bitcoin (BTC) for between 6 months and 2 years, typically considered as bull market participants, started selling a significant portion of their holdings when BTC approached its previous record high. Furthermore, investors who had owned BTC for over 2 years, often referred to as bear market investors, were also observed offloading around 67% of their Bitcoin. Simultaneously, there has been a surge in the total unspent output value (UTXO supply) among veteran investors spanning various age groups. This rise in UTXO supply indicates growing confidence among older investors.
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2024-07-24 13:11