Bitcoin Long-Term Holders Accumulating Amid Market Crash
Recent on-chain data reveals that Bitcoin long-term holders (LTHs) have remained unfazed by the market crash, as their supply has continued to rise steadily. LTHs are investors who have held onto their coins for at least one year without selling or transferring them on the blockchain.
Typically, the longer holders keep their coins on the network, the less likely they are to move them. As a result, LTHs are the least likely segment of the market to participate in selling. They are often referred to as “diamond hands” due to their strong resolve.
Tracking Bitcoin LTH Supply
To monitor whether LTHs are selling or not, analysts track the total supply they hold in their wallets. The balance of Bitcoin LTHs has been on an upward trend for several years, indicating consistent accumulation.
It’s important to note that while selling is immediately reflected in the chart, buying is not. Coins are only added to the LTH supply after being dormant for a year. Therefore, an increase in the indicator suggests buying that occurred a year ago.
LTHs Remain Steadfast Amid Price Plunge
Despite the recent price plunge, LTHs have not reacted by selling their holdings. This suggests that these investors do not believe the market has reached its peak yet. When LTHs start selling, it may indicate that Bitcoin is becoming overheated.
BTC Price Recovery
Bitcoin is currently experiencing a recovery from the crash and has surpassed the $44,000 level.
Hot Take: Bitcoin Long-Term Holders Show Resilience Amid Market Turmoil
Despite the recent market crash, Bitcoin long-term holders have remained steadfast in their resolve to hold onto their coins. On-chain data reveals that their supply has continued to rise, indicating accumulation rather than selling. This suggests that these investors do not believe the market has reached its peak and are waiting for further gains.
The behavior of long-term holders is closely watched by analysts as it can have implications for the wider market. If and when these investors start selling, it could signal a turning point for Bitcoin. For now, they remain “diamond hands” in the face of market turmoil.
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