Bitcoin has been performing well on the market lately. The price of the digital asset reached $ 50,000 this week before a slight retracement that reached $ 49,000. This was due to several factors in the market. This is due to growing interest. Bitcoin prices have been rising and there have been many interesting developments in the space. These include patterns of holding and lengths of holding.
Recent data shows that bitcoin holders who are short-term have fallen to new lows. Investors now hold their coins and don’t take them out from their wallets. This happens regardless the bitcoin price. For three months, a record 84% of the total supply of bitcoin has not been moved. This is the same time as the end of the last bullish rally, which saw the asset hit an all-time high against the current rally.
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Bitcoin is taken out of stock exchanges by investors
A bullish rally that would normally result in an accelerated liquidation is now having exactly the opposite effect. Instead of investors scrambling to sell their coins, and taking profits as the price increases, data shows that investors are building up their coins. This is evident in the exits and entries to cryptocurrency exchanges.
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As long-term holders of bitcoin have refused to sell, increasing buying pressures are now the norm. With more than 80% of total supply remaining unchanged, demand has outpaced supply and resulting in higher BTC price. Long-term holders tend to only take shares from short-term holders to increase their reserve.
Source:| Source: Twitter
This creates a scarcity in the digital asset, which will result in buying pressures continuing to rise while selling pressures decreasing. The outputs from crypto exchanges indicate that investors are consolidating and accumulating BTC over the long-term.
The tides shift, and so do our hands
Bitcoin investors have changed their investment strategy over the past two years. Previously, the most popular investment strategy was to purchase the asset, hold it over time, then sell it during a bull rallies. This was the case in previous rallies. These patterns have always led to a bear market that lasts for a long time after a bullish market.
Source| Source: TradingView.com - BTCUSD
Investors have moved with the market’s movements. BTC’s potential is not a short-term profit grab. Instead, the coins are kept for the long term. Bitcoin’s growth over time has shown that it is still at its early stages of growth. Digital assets will most likely experience higher gains in the coming years.
The number of crypto-stupid hands is declining day by day. Investors are increasingly turning to long-term investment. Bitcoin now has a greater number of diamond hands on the market than it does weak hands.
Featured image from USA Today. Chart by TradingView.com