An on-chain Bitcoin statistic suggests that holders of BTC currently have very strong hands and are hesitant to let go of their coins, according to a Glassnode analyst.
In a new video update posted to social media platform down from highs after each major rally.
According to Checkmatey, Bitcoin’s recent price declines have been uniquely shallow compared to previous bull runs.
The on-chain analyst say the metric suggests that current holders of BTC are historically strong and reluctant to sell their coins, even after the adoption of exchange-traded funds (ETFs), which has largely been viewed as a “sell the news” event.
Says the analyst,
“On price alone, this has been my favorite for pretty much a whole year because what we’re really looking at is, again, anchoring each cycle at whatever the low point was. What is the maximum peak recording? So whatever height we reach in that cycle, what is the peak decline?
In all previous cycles we have seen very, very regular corrections of 25%, 30%, sometimes 60% and 50% during those uptrends.
It is clear that those 60% and 50% [corrections] you’re talking about March 2020 and several similar events, but you can see that with these uptrends we’re getting some pretty significant declines.
And we just didn’t have that. Even in the post-ETF [phase], which really got a bit frothy, we only saw about a 20% correction. So in a sense it tells you that there is an interesting balance between both support on the buy side, but also a very, very strong reluctance on the part of existing holders to actually liquidate their coins.
At the time of writing, Bitcoin is trading at $42,103.
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