Investing.com – That a volatile asset should no longer come as a surprise. The fact that crypto investors are still holding on to their positions despite the halving in May is astonishing.
A recent data analysis by the crypto analysis company Glassnode showed that Bitcoin investors showed nerves of steel during this volatile period and held steadfastly to their positions.
Bitcoin hit its most recent record high in April at $ 64,700. After that, the Bitcoin rate halved, followed by a consolidation around the $ 30,000 mark. After a sideways phase of several weeks, the bulls finally prevailed and briefly drove the BTC back above the $ 50,000 mark. The most important cryptocurrency in terms of market capitalization is currently trading at $ 47,000.
On twitter explained Glassnode said the latest on-chain metrics suggest that many BTCs changed hands during the May correction, but that long-term investors who have held their Bitcoins for at least five months would not have been deterred by the volatility.
“The relative supply of LTH (long-term owners) and STH (short-term owners) tells us an interesting story about Bitcoin”
More than 16.8 percent of the BTC supply has been invested in the past 5 months and returned to profitability at a recent high of $ 52,800, according to Glassnode. Long-term investors would now control 79.5 percent of the BTC supply, just as much as in October 2020, shortly before the start of the mega-rally, which reached its preliminary peak in April 2021 at $ 64,700.
“This suggests that many of the coins changed hands during the recent consolidation in the $ 29,000 to $ 40,000 range. This also suggests that the BTC purchased in Q1 through Q2 2021 are still firmly in the hands of investors, who were not deterred by the decline of more than 50 percent. “
Measured by the absolute coin volume, long-term investors would now be sitting on more coins than ever before in the history of Bitcoin. According to Glassnode data, this group of investors is expected to reach over 12.97 million BTC.
“LTH-owned supply spikes typically correlate with late bear markets, historically followed by supply shortages and the initiation of cyclical bull markets.”
Glassnode also investigated the September 7th and found that investors who bought between $ 45,800 and $ 52,600 continue to hold onto their coins even if their positions are currently in the red.
“In the recent sell-off, over 10.3 percent of Bitcoin supply went from unrealized gain to unrealized loss. That means roughly 1.94 million BTC has an on-chain cost base between $ 45,800 and $ 52,600 . “
On the day it was recognized as the official means of payment in El Salvador, Bitcoin had plummeted by up to 15 percent within a few minutes, testing its exponential 20-week line at $ 43,135, which has already served as a springboard for higher prices several times in the past would have.
Once again, the dynamic support withstood the selling pressure and caused the price to rebound more than $ 3,000 back to over $ 46,000 in the last seven days of trading. But not only that, Bitcoin also rose above the trend-relevant 200-day line on Tuesday (currently at $ 45,866). This smoothing line is seen by market participants as an important signal for the overarching trend direction of an asset.
In the same notch as Glassnode’s assessments beats Will Clement’s on-chain analysis showing a sustained positive BTC trend. According to Clemente, over 90 percent of the existing Bitcoin supply last month remained untouched despite the wild price swings of BTC.
“93 percent of Bitcoin supply has not moved in at least a month. This represents an all-time high. This is just another metric that shows how bullish the supply momentum is.”