Glassnode: Bitcoin holding activity similar to previous market bottoms

The majority of bitcoin has been “held” for at least three months,  according to blockchain analysis firm Glassnode , a behavior that is strikingly similar to previous bitcoin market bottoms.

Glassnode noted in a July 16 tweet that more than 80 percent of the total dollar-denominated funds invested in Bitcoin have not been moved for at least three months.

The company said this means that “a large portion of the bitcoin supply is dormant” and holders are “increasingly reluctant to sell at lower prices.”

At the time of writing, Bitcoin is priced at $21,013, down nearly 70% from its November 2021 all-time high of $69,044. According to crypto intelligence firm IntoTheBlock, about 45% of bitcoin holders are losing money on paper at current prices.

There were similar levels of Bitcoin holdings at the end of the bear market in 2012, 2015 and 2018, according to the Glassnode chart.

Last week, David Duong, head of institutional research at Coinbase , wrote in a July 12 report titled “The Elusive Bottom” that on-chain data suggests that the recent Bitcoin sell-off was “almost entirely” driven by short-term speculation. carried out. He added that long-term Bitcoin holders “did not sell when the market was weak.”

“These holders hold 77% of the total supply, down slightly from 80% at the beginning of the year, but still quite high,” he explained, before adding:

“We see this as a positive sentiment indicator as we believe these holders are unlikely to sell bitcoin during turbulent times.”

Earlier this month, analysts at Glassnode noted that the Bitcoin market was almost completely cleared of “tourists,” noting that activity on the network was at levels consistent with the worst of the bear market in 2018 and 2019.

Glassnode revealed that since November 2021, there has been a downward trend in the number of active addresses and entities, meaning that neither new nor existing investors have interacted with the network.

Additionally, according to the company, the number of non-zero Bitcoin addresses has reached an all-time high of 42,530,652.

Posted by:CoinYuppie,Reprinted with attribution to:
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