Bitcoin is currently trading around $22,000, which means around 45% of BTC hodlers are currently in losses according to Glassnode. Various indicators may suggest that the base may have been reached even if care is still in order.
The holders keep on
Most of BTC is now being held for at least 3 monthswhich closely resembles the last bottom marked by Bitcoin according to blockchain data analytics firm Glassnode. In a tweet last Sunday, Glassnode reveals that more than 80% of the dollar wealth invested in Bitcoin has not been touched for at least three months. This therefore means that a most properties in BTC are inactive.
over 80% of total USD denominated wealth was invested #Bitcoin been HODL for at least 3 months.
This shows that the majority of $BTC coin supply is idle, and more people are becoming more willing to HODL spending at lower prices.
Live Chart: https://t.co/lRtBe69Phz pic.twitter.com/NIQzwkXQDv
— glassnode (@glassnode) July 16, 2022
Bitcoin has been down slightly for 24 hours, which, at the time of writing, is around $22,000, a drop of almost 70% from HUD of $69,044 in November 2021. The current price means that 45% of Bitcoin holders are at a loss on paper according to the company IntoTheBlock.
According to Glassnode, it was the last time a similar situation was observed the end of the 2012, 2015 and 2018 bear markets.
Another detail that points in the right direction
Last week did the director of institutional research at Coinbasewrote David Duong in a report titled “ The Illusive Bottom “, the illusory log in French, that data on a recent chain suggests that the recent BTC sales was made almost exclusively by short-term speculators. In fact, long-term holders of BTC did not sell in such a weak market, he wrote.
He writes in this report:
These incumbents have a highly concentrated share of around 77% of the total supply, which is slightly down from the 80% at the start of the year, but still quite high. We see this as a positive sentiment indicator as we believe these holders are less likely to sell BTC during turbulent times.
Earlier this month, Glassnode also noted that the deal had been made a “total screening of tourists” noting that activity levels on the network were similar to those at bear market lows in 2018 and 2019.
As of November 2021, Glassnode suggests that the there is a downward trend in the number of active addresses, showing that new and old investors do not interact with the network. In addition, the number of non-zero BTC addresses (addresses containing even a small fraction of BTC) reached ATH with more of 45,530,632 addresses depending on the company.
Bitcoin’s future is difficult to predict, but this data allows us to shed some light on the sentiment currently driving the market.
For more information on Bitcoin, find our latest article on its correlation with traditional markets here.