Long-term Bitcoin holders are likely betting on future price increases, keeping the supply limited.
The first rule of hodling is you always hodling
The bigger portion of Bitcoin, around 75% remained untouched for at least six months, shows the data from Glassnode’s HODL Waves chart.
This chart tracks the holding behavior of Bitcoin investors over time and now it suggest a growing trend among holders to keep their assets dormant.
This figure also seen an increase from the previous week, where only about 45% of Bitcoin had stayed unmoved for the same period.
The high percentage of inactive Bitcoin reflects strong confidence among investors in Bitcoin’s potential for future price appreciation.
Despite Bitcoin’s price dipping over 10% in the past month, it has still gained 12% over the last six months.
If we take a look to the last six years? Well, you can imagine. At the time of writing, Bitcoin is trading near $58,000, again. 58k gang must be pretty happy now.
„Don’t do anything, just sit there!”
The large amount of Bitcoin remaining untouched reduces the liquid supply readily available for trading.
If demand for Bitcoin rises, this limited supply could drive prices higher.
But on the other hand, analyst James Check highlighted a potential risk, noting that over 80% of short-term Bitcoin holders are currently sitting on losses, having purchased at higher prices.
He cautioned that this situation might trigger panic selling, similar to what was observed in 2018, 2019, and mid-2021.
Not among hodlers, but high time preference traders and speculators. Hodlers dgaf when price went from 69,000 to 15,000 earlier. They likely bought more.
Miners selling, because electricity isn’t free
CryptoQuant’s new report suggests that Bitcoin miners might be on the verge of capitulation.
Daily outflows from miners grew to 19,000 BTC during the week of August 5, as miners might be forced to sell their reserves due to smaller profit margins, which have fallen to their lowest levels since January. It’s not a competetive industry by coincidence.
CryptoQuant’s analysis shared that miners are under financial pressure due to declining prices and rising mining difficulty, which recently hit record highs in late July.
The report warned that miners might continue to offload their Bitcoin reserves as they have to face with these challenges.
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