Long-term Bitcoin holders accumulating and holding for longer
A recent report suggests that long-term Bitcoin holders are continuing to accumulate and hold onto their coins for extended periods of time, indicating a broader sentiment of optimism. The report from Bitfinex indicates that 40% of Bitcoin’s supply hasn’t moved in more than three years, which is an all-time high for this metric. This behavior suggests that there is a bullish outlook for Bitcoin in the longer term, despite its current price being below $26,000.
Bullish sentiment indicated by Coin Days Destroyed metric
- The Coin Days Destroyed metric shows that long-standing digital assets have largely remained dormant on-chain.
- This behavior insinuates a broader sentiment of optimism and potential resilience against market volatilities.
Bearish sentiment indicated by narrower one-year inactive supply metric
- The narrower one-year inactive supply metric indicates a more bearish sentiment.
- An analysis by Bitfinex suggests that movements in this timeframe preceded a drop in price.
- Recent flash crash and liquidations caused newer long-term holders to be unsettled but not in a state of panic.
Current market conditions and factors impacting sentiment
- Bitcoin is currently trading at $25,943, and recent events such as the Federal Reserve’s hawkish tones, rising bond yields, and uncertainty in China are encouraging risk-off sentiment.
Hot Take
The report’s findings indicate a mixed sentiment among Bitcoin holders. While long-term holders continue to accumulate and show optimism, the recent flash crash and bearish sentiment among newer long-term holders suggest some uncertainty in the market. Overall, the longer-term bullish outlook for Bitcoin remains intact, but short-term volatility may persist.
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