Long-term Bitcoin holder hits $10B as price drops below $60K
Long-term bitcoin holders have spent $10 billion buying the cryptocurrency and are pulling back from selling as the price declines from 2021 all-time highs, the analyst says.
“For the first time, the capitalization of long-term holders has exceeded 10 billion dollars,” CryptoQuant contributor Amr Taha said in an August 27 post.
Long-term owners are less likely to panic.
The resulting cap takes into account the price at which each Bitcoin (BTC) was last sold. The guaranteed cap is “often compared to the market cap to understand overall market conditions,” Bitbo explains.
Long-term holders are those who have held Bitcoin for more than 155 days. Taha explained that once the holders pass the 155-day mark, “the likelihood of selling is significantly reduced, meaning these holders are less likely to sell during short-term market fluctuations.”
Since bitcoin began its 29-day trading low below $69,000 on July 30, the selling pressure of long-term holders has “reduced by a factor of 3.7,” fellow CryptoQuant contributor Axel Adler noted on August 27.
Bitcoin is currently trading at $59,404, down 5.47% in the last 24 hours. According to CoinMarketCap, it is down 0.11% on the week after touching a high of $64,791.
Bitcoin price has fallen below the crucial 000 level that traders have been watching closely. Source: CoinMarketCap
The current price is 8% less than the average Bitcoin long-term holder paid for Bitcoin – $64,490 according to Chainexposed data.
However, crypto traders believe the price could see further declines, forcing long-term holders to hold on longer as they wait for better profit opportunities.
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“Bitcoin will pull back deeply to convince you that the bull market is over,” added crypto trader Rect Capital.
Many traders see $50,000 as a critical support level, and if it breaks, Bitcoin can push it into the uncertain zone.
It comes after the June Glassnode report that three-quarters of Bitcoin in circulation has not moved for the past six months or more.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
