Long-term Bitcoin holders have, in total, spent a milestone $10 billion to buy the cryptocurrency and have been pulling back from selling as its price retreats from its 2021 all-time highs, according to an analyst.
“For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion,” CryptoQuant contributor Amr Taha said in an Aug. 27 post.
Long-term holders less likely to panic-sell
The realized cap takes into account the price at which each Bitcoin (BTC) was last sold. It’s realized cap is “often compared to Market Cap to get a sense of the overall market vibe,” according to crypto analytics firm Bitbo.
Long-term holders are those who’ve held Bitcoin for over 155 days. Taha explained that once holders have crossed the 155-day mark, “the likelihood of selling decreases significantly, meaning these holders are less likely to sell during short-term market fluctuations.”
Since Bitcoin began its 29-day streak of trading below $69,000 on July 30, selling pressure from long-term holders has “decreased 3.7 times,” fellow CryptoQuant contributor Axel Adler noted on Aug. 27.
Bitcoin traded at $59,404 at the time of writing on Aug. 28, down 5.47% in the past 24 hours. The asset is down slightly on the week by 0.11% after touching a high of $64,791, according to CoinMarketCap.
Bitcoin’s price has fallen below the crucial ,000 level that traders have watched closely. Source: CoinMarketCap
Bitcoin’s current price is around 8% lower than the average of $64,490 that long-term holders paid for Bitcoin, according to ChainExposed data.
However, crypto traders believe the price might see further downside, forcing long-term holders to hold on even longer while waiting for better profit-taking opportunities.
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“Bitcoin will retrace deep enough to convince you that the Bull Market is over,” pseudonymous crypto trader Rekt Capital added.
Many traders view $50,000 as a crucial support level, and if it breaks, it could push Bitcoin into an uncertainty zone.
It comes after a June Glassnode report found that around three-quarters of all circulating Bitcoin hasn’t been moved for the past six months or more.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.