Long-Term Bitcoin Investors Could Drive Prices Higher, Data Shows
Data provided by CryptoQuant and Glassnode indicate that long-term bitcoin (BTC) investors may push prices even higher in the coming days or weeks. Here are the key points:
- CryptoQuant data reveals that the 1,000 to 10,000 BTC unspent transaction output (UTXO) Value Bands have been steadily increasing since December 2022. This suggests that 2022 may have been a long-term bottom.
- UTXO value is a measure of investor behavior, particularly for whales. CryptoQuant states that the 1K-10K UTXO Value Bands are the most influential indicator based on price.
- In 2019, a similar upsurge in the 1,000 to 10,000 BTC UTXO Value Bands occurred, preceding a rise in bitcoin’s price from $4,000 to $61,500 in April 2021. This was followed by a market crash in 2022.
- Glassnode data shows that the number of coins held in self-custody or lost wallets has reached a five-year high of 7,781,224 BTC.
- The recent Ripple victory against the US Securities and Exchange Commission (SEC) and the acceptance of spot BTC ETF applications have revitalized the crypto scene.
Bitcoin is currently trading between $30,200 and $30,400, showing a 0.05% decline in the last 24 hours. However, it is still down 4.83% from its local top of $31,814 on July 13.
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Hot Take: The rise in long-term bitcoin holdings and the acceptance of BTC-related applications indicate a potentially optimistic outlook for bitcoin’s price in the near future.
