A new report from cryptocurrency exchange Bitfinex reveals that long-term Bitcoin holders continue to accumulate and hold BTC despite recent price fluctuations.
According to the report, 40% of Bitcoin supply has not moved in more than three years, an all-time high for this metric.
The report uses the Coin Days Destroyed metric, which tracks how long and how many coins move on the blockchain. The higher the metric, the more active the network. The lower the metric, the more dormant the coins are.
The report states that for over three years inactive coins remain largely dormant, which translates into “broader positive sentiment and potential resilience to market fluctuations.”
The report suggests that even though BTC is closing the month of August below $26,000, these long-term coin holders have a bullish outlook for BTC over the long term.
However, the report also noted that coins that have been inactive for less than a year show signs of further movement. According to analysts, movements in this time frame preceded the drop in price.
The report referred to the BTC crash on August 17 that caused BTC to drop to $25,000 with over $1 billion in liquidation. “The 'newer' long-term holders who have taken a spot position in the bear market are currently uneasy, but not in a panic,” added analysts.
*Not investment advice.
