Cryptocurrency analysis firm Alphractal has shared a new assessment highlighting long-term investor behavior in the market.
According to the company’s report, the “Lost Coins” metric is an often-overlooked but important indicator in crypto cycles.
Alphractal stated that coins of UTXO-based cryptocurrencies like Bitcoin, Dogecoin, and Litecoin that have never been moved are defined as “lost coins.” The company noted that as prices rise, the motivation for long-term investors to move their coins increases. He added that this value typically declines during strong bull rallies, but most analysts ignore this effect.
The report also pointed out that a significant portion of these coins belonged to “dinosaur” investors in the market, speculators who accumulated in the early stages of projects. Alphractal also noted that the lost coins metric will never reach zero because there are addresses that are irretrievably inaccessible.
On the other hand, when the “lost coins” metric rises, it generally indicates that long-term investors are not interested in selling. According to Alphractal, this can signal a continued sideways market or the presence of a bear market.
Currently, while the amount of lost coins is decreasing on the Bitcoin side, their amount is increasing on the Dogecoin and Litecoin side.
*This is not investment advice.
