The post Long-Term Bitcoin Holders Shed 200k BTC: Here’s What It Means appeared on BitcoinEthereumNews.com.

After reaching $52,000 within a span of two years, Bitcoin seems to have encountered a barrier. It’s currently trading below this significant psychological threshold, but overall, the sentiment remains optimistic. Recent data indicates a characteristic pattern of behavior seen in bullish market holders. ‘Typical Hodler Behavior’ Long-term holders of Bitcoin have collectively sold about 200,000 BTC from their stash since the start of the year. This selling trend has persisted for nearly three months, with their balances consistently decreasing during this period. According to IntoTheBlock’s latest analysis, this is “typical hodler activity” during bull runs since such behavior is considered typical among “hodlers,” or long-term holders, in similar market conditions. Comparing this current trend to the previous bull market, there’s a notable difference in the rate of decrease in Bitcoin holdings among investors. During the last one, holders reduced their BTC balances by approximately 15%. However, in the current scenario, the decrease amounts to only around 1.5%. Bitcoin Holders’ Balance. Source: IntoTheBlock This suggests that while long-term holders are still selling some of their Bitcoin, they are doing so at a much slower pace compared to the previous bull market, indicating a potentially more cautious approach amidst the current conditions. The selling has been offset by the tremendous accumulation by various cohorts of investors. According to Ki Young Ju, CEO of CryptoQuant, Bitcoin inflows into accumulation addresses have surged to an all-time high of 25,300 BTC. These addresses, which exhibit certain characteristics such as no outgoing transactions, holding a balance exceeding 10 BTC, and consistent activity over seven years, suggest a strategic effort by major holders to accumulate Bitcoin well in advance of anticipated price increases rather than waiting until market peaks. Bitcoin Exchange Balances Hit 2018 Lows Since mid-March 2020, there’s been a significant drop in Bitcoin held on…

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Filed under: News - @ February 22, 2024 2:24 am