People are also interested: How to sign up for FTX is the simplest for beginners
Bitcoin’s price had just topped $21,000 at the time of writing — meaning around 45% of BTC holders have an “on-paper loss,” in keeping with Glassnode.
The majority of Bitcoin has been “hodled” for a minimum of three months in behavior bearing a striking resemblance to previous Bitcoin market bottoms, says blockchain analytics firm Glassnode.
In a July 16 tweet, Glassnode noted that quite 80% of the entire U.S. dollar (USD)-denominated wealth invested in Bitcoin has not been touched for a minimum of three months.
This signifies that the “majority of BTC coin supply is dormant” which hodlers are “increasingly unwilling to spend at lower prices,” said the firm.
Over 80% of the total USD denominated wealth invested in #Bitcoin has been HODLed for at least 3-months.
This signifies that the majority of the $BTC coin supply is dormant, and HODLers are increasingly unwilling to spend at lower prices.
Live Chart: https://t.co/lRtBe69Phz pic.twitter.com/NIQzwkXQDv
— glassnode (@glassnode) July 16, 2022
Bitcoin’s price is $21,013 at the time of writing, down almost 70% from its all-time high of $69,044 in November 2021. the present price puts around 45% of Bitcoin holders with an on-paper loss, consistent with crypto intelligence firm IntoTheBlock.
According to the Glassnode chart, other times that saw similar levels of Bitcoin holding were during the tip of the bear markets of 2012, 2015, and 2018.
Last week, Coinbase’s head of institutional research, David Duong, wrote in a very July 12 report titled “The Elusive Bottom” that On-Chain Data suggests that recent BTC selling has been applied “almost exclusively” by short-term speculators. Long-term BTC holders “have not been selling into the market weakness,” he added.
“These holders own a highly concentrated ~77% of the whole supply, which is down slightly from 80% to begin the year but still quite high,” he explained before adding:
“We see this is often a positive sentiment indicator as we believe these holders are less likely to sell BTC during turbulent periods.”
Earlier in the month, Glassnode analysts noted that the Bitcoin market had seen an almost complete purge of “tourists,” noting that activity on the network is at levels concurrent with the deepest part of the market in 2018 and 2019.
Related: Bitcoin able to attack key trendline, says data as BTC price holds $20K
Glassnode revealed that the amount of active addresses and entities had seen a downtrend since November 2021, implying new and existing investors alike don’t seem to be interacting with the network.
Additionally, the amount of non-zero BTC addresses has reached an all-time high of 42,530,652, in keeping with the firm.
