As the crypto market experiences volatility, a fascinating trend has emerged among major Bitcoin holders. According to CryptoQuant, long-term Bitcoin holders have increased their supply by a significant 262,000 BTC in the last 30 days. This surge in accumulation has boosted their total holdings to an impressive 14.82 million Bitcoin, accounting for 75% of the total Bitcoin supply.
Long-term holders (LTHs) are individuals who have held onto their Bitcoin for extended periods without selling, even during market fluctuations. The recent accumulation of 262,000 BTC within a month showcases the long-term confidence these holders have amidst short-term market ups and downs.
This increase in accumulation by long-term holders serves as a positive sign amid the profit-taking occurring in the crypto markets. Despite recent declines in Bitcoin's price, the significant accumulation by LTHs suggests a strong belief in the long-term potential of the cryptocurrency.
Bitcoin Price Drops
Bitcoin experienced a sharp drop of over 6% in yesterday's trading session, marking its steepest decline since the crash on August 5th. The cryptocurrency is currently trading at $60,162, down 5% for the day, following a drop from highs of $65,062 to lows of $58,025 over the past two days.
Short-Term Holders established a resistance level at their breakeven price, resulting in a 10.8% decrease in Bitcoin's price. Traders speculating on rising prices contributed to a fragile environment in the market, with Open Interest increasing by 31% to $17.9 billion since August 5th.
Despite the recent price drops, the accumulation by long-term holders suggests a strong belief in the future of Bitcoin. Investors should consider this trend as a potential indicator of the cryptocurrency's resilience and long-term value.
Analysis:
The recent surge in accumulation by long-term Bitcoin holders indicates a strong belief in the cryptocurrency's long-term potential, despite short-term price fluctuations. This trend suggests stability and resilience in the face of market volatility, highlighting the confidence of experienced holders in Bitcoin's future. For investors, this can serve as a positive signal, emphasizing the importance of considering long-term trends and accumulation patterns in making investment decisions in the crypto market.