Long-Term Bitcoin Holders Keep The Faith: 40% Supply Remains Untouched For Over 3 Years
August 29 2023 - 3:00PM
NEWSBTC
A recent report from Bitfinex has shed light on a trend in the
Bitcoin market. The report shows despite the unpredictability of
the crypto market; long-term Bitcoin holders appear to be playing
the patience game, signaling a buoyant outlook on the digital
currency. This resilience and sense of optimism come to the fore as
Bitfinex’s Alpha report reveals roughly 40% of Bitcoin’s total
supply has remained untouched for over three years, marking an
all-time high. Related Reading: JPMorgan Shares Prediction On
Bitcoin’s Next Move: What You Need To Know Bitcoin Dormant Supply
Hits Record Highs The latest Bitfinex report illuminates that about
40% of Bitcoin’s supply has not witnessed any movement for more
than three years. Based on the Coin Days Destroyed metric, the
findings further highlight that this portion of the BTC has
remained inactive on-chain. Analysts at Bitfinex, in a note,
deduced that this pattern highlights a prevailing mood of
confidence, hinting at possible stability in the face of usual
market fluctuations. The analysts noted: This behavior insinuates a
broader sentiment of optimism and potential resilience against
market volatilities. It is worth noting that such a trend can be
interpreted as a clear indication that long-term Bitcoin
enthusiasts are maintaining a bullish perspective. Contrasting
Metrics: Narrower Timeframes Hint At Bearish Sentiments While the
three-year metric paints a promising picture of enduring
confidence, the picture is slightly different when the lens narrows
to a one-year timeframe. Within this shorter period, the inactive
supply metric points towards a bearish sentiment, hinting at
potential price drops. Bitfinex’s report stated: “Our analysis
indicated that movements on this timeframe preceded the price
drop.” A case in point is the sudden major Bitcoin fall on August
17, which led to the loss of roughly over $1 billion in
liquidations. This crash plunged BTC’s value momentarily to the
$25,000 zone. The analysis by Bitfinex suggests that this crash can
be attributed, in part, to the “newer” long-term holders. According
to the report, these individuals, who secured their positions
during the bear market, are now experiencing a sense of “unease
without succumbing to panic.” Related Reading: BREAKING: Grayscale
Triumph: SEC Crushed, GBTC Rockets Towards ETF, Bitcoin Targets
$28,000 Meanwhile, following the conclusion of the legal
battle between the US Securities and Exchange Commission (SEC) and
crypto asset manager Greyscale, in which the latter emerged
victorious, Bitcoin experienced a notable surge. BTC is trading
above $27,000 when writing and marking a 5.2% increase in the past
24 hours. This news is especially significant considering BTC was
hovering just below $26,000 and moving sideways before the
announcement. Featured image from Unsplash, Chart from TradingView
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