Previous market bottoms reflects resemblance to current Bitcoin holding activity
July 19, 2022 6:07 AM
Bitcoin price, at the time of writing, had just hit $21,000; saying about 45% holders of Bitcoin have an "on paper loss" according to Glassnode
Blockchain analytics firm Glassnode says; for at least 3 months, the majority of Bitcoin has been "hodled", which bears an attention drawing resemblance to Bitcoin previous market bottoms.
Glassnode noted, in a tweet on July 16th, that over 80% of the U.S Dollar designated wealth invested in Bitcoin has not been touched for at least 3 months. This signifies that the “majority of BTC coin supply is dormant” and that hodlers are “increasingly unwilling to spend at lower prices,” said the firm.
" Over 80% of the total USD denominated wealth invested in #Bitcoin has been HODLed for at least 3-months.
This signifies that the majority of the $BTC coin supply is dormant, and HODLers are increasingly unwilling to spend at lower prices."
glassnode (@glassnode) July 16, 2022
Down almost 70% from it's all-time high of $69,044 in November 2021, Bitcoin price at the time of writing is $21,010. The current price puts around 45% of Bitcoin holders with an on-paper loss, according to crypto intelligence firm IntoTheBlock.
Other times that saw similar levels of Bitcoin hodling were during the end of the bear markets of 2012, 2015, and 2018, according to the Glassnode chart.
Last week, Coinbase's head of institutional research, David Duong, wrote in a July 12 report titled “The Elusive Bottom” that on-chain data suggests that recent BTC selling has been carried out “almost exclusively” by short-term speculators. Long-term BTC holders “have not been selling into the market weakness,” he added.
“These holders own a highly concentrated ~77% of the total supply, which is down slightly from 80% to start the year but still quite high,” he explained before adding:
“We see this as a positive sentiment indicator
as we believe these holders are less likely to sell BTC
during turbulent periods.”
Glassnode analyst, earlier in the month, noted that the Bitcoin market had seen an almost complete purge of "tourists", noting that the activity on the network is at levels similar to the deepest part of the bear market in 2018 and 2019.
Revealed by Glassnode is that the number of active addresses and entities had seen a downtrend since November 2021, implying new and existing investors alike are not interacting with the network.
In addition, the number of non-zero BTC addresses has reached an all-time high of 42,530,652, according to the firm.