Bitcoin hodling activity resembles previous market bottoms: Glassnode

According to blockchain analytics firm Glassnode, the vast majority of Bitcoin has behaved very much like the bottom of the previous Bitcoin market for at least three months.

In a tweet on July 16, Glassnode said more than 80% of the USD-denominated wealth invested in Bitcoin has not been touched for at least three months.

This means that “most of the BTC coin supply is dormant” and Hodler “is increasingly unwilling to spend at low prices”.

Over 80% of total US dollar-denominated wealth invested #Bitcoin It has been HODLed for at least 3 months.

this is, $ BTC The supply of coins has ceased and HOD Ler does not want to spend at lower prices.

Live chart: https://t.co/lRtBe69Phz pic.twitter.com/NIQzwkXQDv

Glassnode (@glassnode) July 16, 2022

Bitcoin is priced at $ 21,013 at the time of writing, almost 70% lower than the record high of $ 69,044 in November 2021. At current prices, about 45% of Bitcoin holders are written on paper. lossAccording to the crypto intelligence company IntoTheBlock.

According to the Glassnode chart, another time when a similar level of Bitcoin jumble was seen was at the end of the bear market in 2012, 2015, and 2018.

Last week, Coinbase’s Head of Institutional Research, David Duong, wrote on July 12th: report On-chain data titled “The Elusive Bottom” suggests that recent BTC sales were “almost exclusively” by short-term speculators. Long-term BTC holders “do not market weaknesses in the market,” he added.

“These holders are very concentrated in about 77% of total supply, a slight decrease from 80% at the beginning of the year, but still quite high,” he explained before adding.

“We think this is a positive sentiment indicator, as these holders are unlikely to sell BTC during times of turmoil.”

Earlier this month, Glassnode analysts pointed out that the “tourists” in the Bitcoin market were almost completely wiped out, and activity on the network was at the same level as the deepest part of the bear market in 2018 and 2019. I pointed out that it is in.

Related: Bitcoin is ready to attack major trend lines and BTC holds $ 20,000 in price, so the data says

Glassnode has revealed that the number of active addresses and entities has been declining since November 2021. This means that new and existing investors are not interacting with the network as well.

moreover, Non-zero According to the company, BTC addresses have reached a record high of 42,530,652.