Bitcoin Moves Look Like Previous Market Lows: Glassnode

Bitcoin Moves Look Like Previous Market Lows: Glassnode

Most bitcoin is “fixed” for at least three months in transit, which bears a striking resemblance to previous bitcoin market lows, says blockchain analytics firm Glassnode.

In a July 16 tweet, Glassnode noted that more than 80% of the total US dollar (USD) denominated wealth invested in bitcoin has not been touched for at least three months.

This means that “the majority of the BTC coin supply is idle” and the accommodation that they are “increasingly willing to spend at lower prices,” the company said.

More than 80% of the total USD-denominated wealth invested in #Bitcoin has been HODL for at least 3 months. This means that most of the BTC supply is idle, and HODLers are becoming more willing to spend at lower prices. Live Graphics: — glassnode (@glassnode) July 16, 2022.

The price of Bitcoin at the time of writing is $21,013, down almost 70% from the all-time high of $69,044 in November 2021. The current price puts about 45% of holders in bitcoins at a loss on paper, according to the firm IntoTheBlock cryptocurrency.

According to the Glassnode chart, other periods have seen similar levels plunder Bitcoin was during the end of the bear markets of 2012, 2015 and 2018.

Last week, Coinbase Head of Institutional Research David Duong wrote in a July 12 report titled “ The Bottom Cloth » that the details on a chain indicated that BTC sales have recently been “almost exclusively” made by short-term speculators. Long-term holders of BTC “didn’t sell in the market weakness,” he said.

“These holders have a very concentrated share, almost 77% of the total supply, which is slightly down from 80% at the beginning of the year, but still quite high,” he previously explained.

“We see this as a positive sentiment indicator, as we believe these holders are less likely to sell BTC during turbulent times.”

Earlier in the month, analysts at Glassnode noted that the bitcoin market had seen an almost complete purge of “tourists”, noting that activity on the network is at levels coinciding with the deepest part of the bear market in 2018 and 2019.

Also read: Bitcoin to Counter Major Trend, Data Shows, as BTC Price Hits $20,000

Glassnode indicated that the number of addresses and active entities has trended downward since November 2021, suggesting that new and existing investors are not interacting with the network.

Also, the number of BTC addresses zero heaven reached an all-time high of 42,530,652, according to this firm.

Bitcoin (BTC) is 24/7

Bitcoin (BTC) is 24/7

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