New data from crypto analytics firm IntoTheBlock reveals that long-term owners of Bitcoin have accumulated tens of billions of dollars worth of BTC over the past year.
In a new report, IntoTheBlock highlights a “somewhat bizarre” rally that took place in crypto even as macro factors acted as headwinds for the digital asset markets.
“The US economy just recorded its second consecutive quarterly decline in real GDP (gross domestic product). Despite the slowdown in growth and the Fed’s 75 [point] rise in interest rates, the crypto markets have fared much better.”
As crypto markets flash signs of life, IntoTheBlock says long-term holders, or entities that have held their crypto stack for at least a year, have amassed 2.7 million BTC ($64 billion) in the past 12 months.
“12.69 million Bitcoins, or about 60% of all Bitcoins in circulation, belong to addresses that have held for at least a year…Long-term accumulation in crypto has historically aligned with bear markets. Current patterns exemplify how ‘HODL’- mentality sets a price floor for Bitcoin.
According to IntoTheBlock, the crypto rally may have benefited BTC, but other digital assets are doing even better.
“It’s not just Bitcoin that is benefiting from the recent rally, with most of the market performing even better. To some extent, this has to do with even higher betas for smaller cap plays. However, Ethereum has its own merits with it expected the move to proof of stake leading to a new all-time high in active addresses.
The research firm concludes that the industry’s current setback does not necessarily mark the end of the crypto bear market.
“Overall, while crypto remains highly correlated to macro conditions, it is creating its own advantages for growth. These have to do both with investor accumulation and broader fundamental changes taking place in the underlying technology.
While this does not necessarily signal the end of the bear market, it is clear that risk to sentiment in crypto is back despite serious macro headlines.”
Bitcoin is changing hands at $23,325 at the time of writing, down 1.75% on the day.
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