Crypto:
32355
Bitcoin:
$99.120
% 2.15
BTC Dominance:
%59.8
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Market Cap:
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% 4.66
Fear & Greed:
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Bitcoin:
$ 99.120
BTC Dominance:
% 59.8
Market Cap:
$3.25 T

Long-Term Bitcoin Holders Spend $10 Billion as Selling Pressure Eases

Bitcoin

According to a fresh research, long-term Bitcoin investors seem to be withdrawing from selling as the price of the cryptocurrency declines from its 2021 all-time highs. All all, they have earned amazing $10 billion on Bitcoin.

For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion,” cryptoquant writer Amr Taha said in an August 27 post. Often used to evaluate the general market attitude as contrasted to the market capitalization is realized capitalization, which takes price of sale of every bitcoin into account.

Those who have owned Bitcoin long-term—more than 155 days—show to be more immune to price swings. “The likelihood of selling decreases significantly,” Taha said, noting that these investors are less hesitant to sell their shares despite short-term market volatility if Bitcoin owners cross this 155-day threshold.

Long-term investor sales pressure clearly dropped when Bitcoin’s price dropped as well. Another CryptoQuant blogger, Axel Adler, observes that as Bitcoin started its run of trading below $69,000 on July 30, selling pressure from these holdings “decreased 3.7 times”. After peaking at $64,791, Bitcoin is now trading at $59,404 according on CoinMarketCap; down 5.47% over the last 24 hours with a slight weekly decline of 0.11%.

Data from Chainexposed shockingly shows that the average price paid by long-term Bitcoin holders—$64, 490—is more than 8% greater than the current price. Many in the crypto world have speculated that future price dips might push these long-term holders to cling to their Bitcoin for even more protracted amounts of time as they wait for better chances to profit.

READ:  Bitcoin Price Analysis by Bitfinex Analysts

Rekt Capital, a pseudonymous crypto trader, said that “Bitcoin will retrace deep enough to convince you that the bull market is over,” implying that a likely dip below $50,000, seen by many as a critical support level, may send Bitcoin into an uncertainty zone.

Based on a June Glassnode analysis showing essentially three-quarters of all circulating Bitcoin had not been transferred in the last six months or more, long-term investors should exercise caution. This information highlights the increased inclination of investors for long-term holding because they remain cool during recent market dips.

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