Bitcoin Price Plunge: Long-Term Holders Buy $1.35 Billion Worth Of BTC
12 Oktober 2023 - 2:30PM
NEWSBTC
A new report from Glassnode, an on-chain analytical firm, has
buttressed recent data indicating Bitcoin holders are adding to
their holdings. These long-term Bitcoin investors, often known as
“HODLers,” don’t appear to be phased by the recent volatility in
Bitcoin’s price. According to on-chain data, long-term
holders have been rapidly amassing Bitcoin, adding more than 50,000
BTC each month to their holdings. Monthly Accumulation Of BTC Worth
$1.35 Billion Bitcoin is currently showing signs of slowing down,
as its price just dipped below $27,000. It would appear that
short-term speculators are mostly to blame for the persistent
selling pressure, as data shows whale investors are seeing this
opportunity to buy more BTC at a discount rather than secure
profits. According to Glassnode’s HODLer Net Position Change
metric, long-term holders are purchasing an average of 50,000 BTC
worth $1.35 billion at the current price of Bitcoin every month.
Another metric, the Long-Term Holder Supply, which measures the
amount of BTC’s market cap with holders, also reached an all-time
high of 14.859 million BTC. This means 76.1% of the total
circulating supply has not moved in the past five months.
Consequently, 94.8% of the total Bitcoin supply has not moved in
the past month. Source: Glassnode To back up this data of increased
accumulation, popular crypto analyst Ali Martinez shared chart data
from Santiment showing Bitcoin whales have purchased around 20,000
BTC since the beginning of October, worth roughly $550
million. At this rate, the number of BTC vaulted by holders
is poised to pass 50,000 in October. This increased accumulation
suggests that long-term holders remain confident in Bitcoin’s
long-term potential and see this price correction as temporary.
#Bitcoin whales have purchased around 20,000 $BTC since the
beginning of October, worth roughly $550 million!
pic.twitter.com/47ZePiaIII — Ali (@ali_charts) October 10, 2023 BTC
price falls below $27,000 | Source: BTCUSD on Tradingview.com
Bitcoin Supply Tightens According to Glassnode, only 11.5% of BTC’s
circulating supply changed hands in the last 3 months, indicating a
prolonged inactive period of on-chain activity. That there are
fewer transactions suggests that investors are unwilling to sell at
the current price as the industry awaits approval of spot Bitcoin
ETFs. Source: Glassnode If this current trend holds, then the
current downtrend could be short-lived, especially if sentiment
among smaller traders also turns toward buying. A predominantly
hold mentality would give the asset time to recover and establish
significant support that serves as a bounce-off point for another
rally. Bitcoin is currently trading at $26,766 and is down by 1.31%
in a 24-hour timeframe as it approaches the next major support near
the $26,500 level. If enough large players accumulate at these
lower prices, it may establish a price floor as bulls push the
price back up. As crypto analyst James Straten points out, Bitcoin
could jump 50% as part of the correlation between the Grayscale
Bitcoin Trust and the price of BTC. Featured image from
Shutterstock, chart from Tradingview.com
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