Home
News
- Long-term BTC investors retain their holdings despite heavy spectacular selling of the asset.
- Holders deciding to keep their BTC is a positive indicator.
- Long term investors hold 77% out of a total 21 million BTC supply.
Coinbase reveals that long-term holders BTC have preserved their holdings in recent weeks. Despite short-term speculators leaving the crypto market and BTC price reaching below $20,000. Long term players holding on to Bitcoin is a positive sentiment indicator. It means that the balance between the supply and demand with spectacular selling happening at a large scale. As per the report titled “The elusive bottom,” the long term investors will hold the cryptoassest for at least six months.
Long-term Investors Holdings Accounts For 77% Of BTC Supply
Meanwhile, David Duongm, head of institute research at Coinbase says the long -term investors holding BTC means crypto will survive in the current bear market. Experts believe this bearish trend in the crypto market is influenced by the Fed. According to the on-chain data tracked by Coinbase Analytics, currently long-term investors hold 77% of the Bitcoin total supply of 21 million. However, it is still lower than 80% recorded in January. But still more than 60% were recorded during the bull run in January 2017. Majority of wealth is distributed among the investors from distributors during three and a half years.
For the uninitiated, speculators are investors who hold assets for a short period. They are easily influenced by macroeconomics factors such as the Fed making changes. Recently, the Fed withdrew liquidity in order to beat high inflation. It resulted in BTC prices going down by 50% to $20,000 in this year.
Also, faulty risk management practices in the crypto universe have come to the surface with the liquidity withdrawal. This has resulted in various miners and firms letting go of their holdings to avoid insolvency.
Recently, in a popular case of insolvency, Three Arrows Capital went bankrupt. It had billions of dollars in assets under management earlier this year. Not only that, lending platforms such as Voyager Digital and Celsius Network too were affected by firms insolvency.
At the time of writing, the price of BTC was trading at $19,782.44, down 0.37% in the last 24 hours.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
