Glass junction facts revealed that Long term Bitcoin holders taking advantage of the cryptocurrency’s lower price to significantly increase their holdings. This accumulation further strengthens the belief that this group of Bitcoin investors is anticipating a potential benefit for Bitcoin despite recent volatility.
Long-term holders will pay $4.3 billion for 70,000 BTC
According to Glass junctionLong-term Bitcoin holders who had done so before sold In the second half of 2023, the 1 billion BTC will accumulate again. This buying activity can be interpreted as a potential bullish signal for Bitcoin.
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Traditionally, Bitcoin holders are long-term holders sell their belongings during peak prices and buy new tokens during periods of correction or substantial declines. When these seasoned investors buy cryptocurrencies during a market low, it usually signals their expectations of a possible rebound. which leads to profit.
On the other hand, short-term holders They have been known to buy cryptocurrencies during sporadic price increases, which often indicates that a cryptocurrency is nearing its peak.
With Bitcoin currently stabilizing above $61,000, long-term Bitcoin holders are likely to see the cryptocurrency’s value as excellent purchasing opportunity. They recently added a whopping 70,000 BTC worth over $4.3 billion to their holdings.
This sentiment for Bitcoin’s potential rally is also shared by a few crypto analysts who have predicted that the cryptocurrency during the impending bull market. Earlier in March, before Bitcoin’s halving, the cryptocurrency skyrocketed above $73,000, marking a new all-time high.
With the bull market still underway, Bitcoin could see even more benefits as market conditions improve and investor demand increases. This could potentially lead to profits for long-term holders who had previously purchased the cryptocurrency.
Moreover, the next one United States inflation report, which will be released on May 15, could also be another primary factor driving long-term investors’ substantial BTC accumulation. While the US Consumer Price Index (CPI) is holding up historically highand the Federal Reserve (FED) At unchanged interest rates, Bitcoin is seen as a possible hedge against inflationary pressures, protecting investor wealth from decline.
Bitcoin whales show opposite trend
Reports from blockchain analytics platform Santiment show that Bitcoin whales are showing the opposite trend to long-term holders.
The analytics platform noted that Bitcoin whales appear to be taking a break from accumulating BTC as the number of large-scale transactions has decreased significantly.
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This trend coincides with the decline of cryptocurrency activities in the chain And his declining value the past weeks.
Crypto analyst Ali Martinez also shared a similar report, highlighting that Bitcoin’s accumulation trend score is currently showing a value closer to zero, indicating that larger investors were dividing their holdings rather than buying.
Despite the downward trend, Martinez has done just that revealed that Bitcoin’s current TD sequence is a signal purchasing opportunity and the cryptocurrency was ready for one back soon. At the time of writing, the cryptocurrency’s price is trading below $62,000, having fallen approximately 6.38% over the past month, according to CoinMarketCap.
Featured image of StormGain, chart from Tradingview.com