By Shelly Melancon (Switzerland)
Analytics provider, Glassnode, has reported that Bitcoin holders are holding on tightly to their coins. The holders are instead even buying more coins. The analytics company said this in their weekly report. The company’s records showed that the token’s long-term investors are more than in many years.
The report revealed that profit-taking is not dominating the market at the moment. The company’s report was released yesterday. The report indicates the holders keep adding to their positions.
Glassnode’s analysis uses Spent Volume Age Band. The indicators can identify the age of coins in transactions on a particular day. Glassnode revealed that the metric could determine how much people were taking profit from their positions or accumulating orders.
The data showed that from November last year, holders sold coins older than a month continuously. The sell-off continued till some time around April of this year where it started waning. The Spent Volume Age Band is currently around 2.5% of the daily traded volume. The percentage was naturally higher when Bitcoin reached its last all-time high in October. Glassnode interpreted the data as long-term holders reducing their selling and increasing their positions.
Glassnode’s data also showed that the short-term holders of the coin are lower than they have been in many years. This confirmed the fact that long-term holders were dominating the market. The report said it was not commonplace to see the present level of long-term holders close to an all-time high.
Also read:Increased Adoption
Currently, there are few signs that the market is going to go crashing down. It is more likely that the upward trend will continue for a while longer. Early in October, reports indicated that long-term investors held over 13 million Bitcoins which is over 50% of the total supply. The data is fascinating because there had been no news of whales taking their assets away from exchanges.
Chinese journalist Colin Wu responded to Glassnode’s report on Twitter, stating that the number of empty wallets is at an all-time low. All of the available information suggests that more investors are pouring in despite recent price dips.
Bitcoin this past week has had the most inflow despite recent market corrections. The cryptocurrency got an influx of capital of over $100 million. Bitcoin is also the most prominent digital asset under management. It has over 60 percent of the managed asset class. Bitcoin isn’t the only cryptocurrency that is getting inflow from investors.
Other Cryptocurrencies Getting Inflows
Ethereum is seen by many as the king of altcoins and has also received an influx of investments. The project saw $14 million in investment, making it the 4th week of it seeing investments. The total in the past month has gotten up to $80 million.
Senior Market Analyst at City Index, Tony Sycamore, believes that if the price of Ethereum stays below $3,850, the price may continue to go down to $2,650. In the face of all this, investors seem undeterred. Other notable mentions are Solana, Polkadot, and Cardano.
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