Key Points:
- Long-term Bitcoin holders are accumulating BTC despite the bearish sentiment, indicating that current prices remain attractive for mature investors.
- Data suggests that large entities, funds, and high-net-worth individuals make strategic BTC allocations at discounted prices.
- Weak hands have been shaken out of crypto markets, transferring coins to those with higher conviction and lower time preference.
Long-term Bitcoin holders continue accumulating BTC despite the ongoing bearish sentiment unfazed by the protracted price decline. According to data from Glassnode, the supply of Bitcoin held by long-term holders – defined as addresses that have held BTC for at least 155 days – grew by 62,882 BTC in July 2023. This equates to approximately $1.83 billion worth of Bitcoin at current prices.
New All-Time-High For Bitcoin Long-Term Holder
The total supply of long-term held Bitcoin reached a new all-time high of 14.52 million BTC this month. This represents over 75% of the circulating Bitcoin supply being held by long-term investors. This growing accumulation and storing activity signal that current prices remain attractive for building Bitcoin positions among mature investors.
Many analysts believe these long-term holder wallets represent sizable entities, funds, or high-net-worth individuals making large strategic Bitcoin allocations. Their continued purchasing suggests an unfazed attitude in the face of Bitcoin’s 70%+ drawdown from its November 2021 peak. These holders seem confident that Bitcoin will recover and move to fresh highs in future market cycles.
Despite ongoing FUD (fear, uncertainty, and doubt) in crypto markets, long-term investors are taking a glass-half-full perspective. Their buying likely aims to strategically build Bitcoin holdings at discounted prices that may not be available again once the market rebounds. These holders have been through past brutal bear markets and are keeping their eyes on the long-term horizon.
The data contrasts with short-term speculators who have capitulated out of Bitcoin and crypto markets in recent months. Weak hands have been shaken out, transferring coins to those with higher conviction and lower time preference. This dynamic has played out repeatedly in past market cycles.
Conclusion
While further short-term price pain could be in store, the actions of long-term Bitcoin holders signal hope the bottoming process is playing out. Once the forced selling and capitulation exhausts itself, their steady accumulation is poised to pay off handsomely when bullish sentiment eventually returns. Patience and vision remain virtues as mature investors tune out the noise and stick to their Bitcoin strategies.
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