• 22 June, 2024
News

Bitcoin Long-Term Holders Show Faith Amid Market Volatility

Bitcoin, the world’s foremost cryptocurrency, has seen its long-term holders add an impressive 1.10 million BTC, worth approximately $33 billion, to their reserves over the past year, according to a Bitcoin analyst, Ali. Despite the digital asset’s 70%+ tumble from its November 2021 zenith, long-term investors have demonstrated their resilience, upholding a bullish outlook for Bitcoin’s future trajectory.

Data from blockchain analytics firm Glassnode indicated that long-term holder wallets, characterized as addresses holding Bitcoin for at least 155 days, augmented their supplies by 62,882 BTC, translating to roughly $1.83 billion, in July 2023 alone. This influx is seen as a testament to the unwavering faith of veteran investors who consider current market prices as prime opportunities to fortify their Bitcoin positions.

BTC/USD long-term holder supply chart, Source: Glassnode

As of this month, the total supply of long-term held Bitcoin registered a record high of 14.52 million BTC. This accounts for over 75% of the existing Bitcoin supply, evidencing a prevailing trend of accumulation and retention among seasoned investors. It’s speculated that these long-term holder wallets belong primarily to large institutions, funds, or wealthy individuals making considerable strategic Bitcoin investments.

Accompanying this accumulation trend, Bitcoin is seeing an upsurge in volatility as a substantial amount of dormant BTC has started moving. Ali alerted investors to expect a surge in Bitcoin volatility, attributing it to a massive shift in idle Bitcoin over the past day, synchronizing with a 10,000 BTC increase in the cryptocurrency’s supply on exchanges.

Wrapping up, Bitcoin’s current market value is $29,331.55, marking a modest 0.5% uptick within the day, according to CoinMarketcap data. While the total market value has ascended by 0.60% to a staggering $569.88 billion, the 24-hour trading volume has dipped by 9.03%, down to $10.04 billion. 

BTC/USD market cap chart, Source: CoinMarketCap

In terms of trading, Bitcoin has been hovering within a limited range, bound by a support level of $29,007.59 and a resistance threshold of $29,521.51. Despite the market’s pendulum-like swings, the steadfast confidence and optimistic expectations of long-term Bitcoin investors suggest a bright horizon for the leading cryptocurrency.

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