Bitcoin hodling activity is similar to previous market bottoms: Glassnode
The majority of Bitcoin has been “squeezed” for at least three months in behavior that has a striking resemblance to previous Bitcoin market bottoms, says the blockchain analysis company Glassnode.
In a tweet from July 16, Glassnode noted that more than 80% of the total assets denominated in US dollars (USD) invested in Bitcoin have not been touched in at least three months.
This means that “the majority of the BTC coin supply is dormant” and that holders are “increasingly reluctant to use at lower prices,” the firm said.
Over 80% of the total assets denominated in USD invested in #Bitcoin has been HELD for at least 3 months.
This means that the majority of $ BTC The coin supply is dormant, and HODLers are increasingly reluctant to use at lower prices.
Live chart: pic.twitter.com/NIQzwkXQDv
– glassnode (@glassnode) July 16, 2022
Bitcoin’s price is $ 21,013 at the time of writing, down nearly 70% from the all-time high of $ 69,044 in November 2021. The current price puts around 45% of Bitcoin holders at a loss on paper, according to crypto-intelligence firm IntoTheBlock.
According to the Glassnode chart, other times saw similar levels of Bitcoin hodling during the end of the bear markets in 2012, 2015 and 2018.
Last week, Coinbase’s head of institutional research, David Duong, wrote in a July 12 report entitled “The Elusive Bottom” that data on the chain suggests that recent BTC sales have been conducted “almost exclusively” by short-term speculators. Long-term BTC holders “have not sold into the market weakness,” he added.
“These holders own a very concentrated ~ 77% of the total supply, which is slightly down from 80% to the beginning of the year, but still quite high,” he explained before adding:
“We see that this is a positive sentiment indicator as we believe that these holders are less likely to sell BTC during turbulent periods.”
Earlier this month, Glassnode analysts noted that the Bitcoin market had seen an almost complete purge of “tourists”, noting that activity on the network is on par with the deepest share of the bear market in 2018 and 2019.
Related: Bitcoin ready to attack key trend line, data says as BTC price holds $ 20K
Glassnode revealed that the number of active addresses and devices had a downward trend since November 2021, indicating that both new and existing investors do not interact with the network.
In addition, the number non-zero BTC addresses have reached an all-time high of 42,530,652, according to the company.
