Long-Term Bitcoin Holders Remain Resilient
Despite the impressive growth and resilience of the crypto market, long-term Bitcoin holders (LTHs) have not given in to market forces. According to a report from Bitfinex Alpha, the diminishing Coin Days Destroyed (CDD) metric suggests that LTHs are holding onto their Bitcoin despite the excitement surrounding the asset.
The CDD metric provides insight into the level of economic activity within the Bitcoin network, offering a more detailed perspective than transaction volume alone. The fact that LTHs are not selling their Bitcoin indicates their belief in its value proposition and future potential.
“Such conviction is indicative of the underlying strength and resilience of the Bitcoin market.”
Low Sell-Side Liquidity
The current market is experiencing low sell-side liquidity, as large Bitcoin holders refrain from selling. This suggests that they either anticipate further price increases or are comfortable holding their positions for an extended period. Wallets with 1,000-10,000 BTC show reduced activity, indicating stabilization or even a bullish sentiment.
In contrast, entities with smaller amounts of Bitcoin in the 10-100 BTC range are contributing to selling pressure. However, this persistent selling pressure has had a limited impact in recent weeks. This behavior aligns with the early stages of bullish markets.
Hot Take: Long-Term Holders Show Confidence in Bitcoin
The steadfastness of long-term Bitcoin holders in not capitulating to market forces is a testament to their confidence in the cryptocurrency’s value and potential. Despite the significant growth and resilience of the crypto market, these holders remain resolute in holding onto their Bitcoin.
This behavior is reflected in metrics such as Coin Days Destroyed (CDD), which indicates the level of economic activity within the Bitcoin network. The fact that CDD is diminishing suggests that LTHs believe in the underlying strength and resilience of the Bitcoin market.
Additionally, the low sell-side liquidity and reduced activity in wallets with larger Bitcoin holdings further support the notion that long-term holders are not swayed by the ongoing rally and are confident in the future price potential. This unwavering conviction bodes well for the continued growth and stability of Bitcoin.
By
By
By
By
