{"id":320272,"date":"2021-08-10T13:17:02","date_gmt":"2021-08-10T10:17:02","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/large-hodlers-accumulate-bitcoin-below-50k-as-btc-transactions-over-1m-soar\/"},"modified":"2021-08-10T13:17:02","modified_gmt":"2021-08-10T10:17:02","slug":"large-hodlers-accumulate-bitcoin-below-50k-as-btc-transactions-over-1m-soar","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/large-hodlers-accumulate-bitcoin-below-50k-as-btc-transactions-over-1m-soar\/","title":{"rendered":"# Large hodlers accumulate Bitcoin below $50K as BTC transactions over $1M soar"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a368b905f216\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a368b905f216\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/large-hodlers-accumulate-bitcoin-below-50k-as-btc-transactions-over-1m-soar\/#Small_transactions_lose_dominance\" >Small transactions lose dominance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/large-hodlers-accumulate-bitcoin-below-50k-as-btc-transactions-over-1m-soar\/#Hodl_sentiment_returns\" >Hodl sentiment returns<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Large hodlers accumulate Bitcoin below $50K as BTC transactions over $1M soar  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Institutions have not left the Bitcoin (BTC) market even in the face of a 50%-plus bearish correction earlier this year, shows data provided by Glassnode.<\/p>\n<p>The blockchain analytics platform reported on Monday that the dominance of Bitcoin transactions exceeding $1 million has surged twofold since September 2020 \u2014 from 30% to 70% of the total value transferred.<\/p>\n<p>Since retail investors do not typically engage in large-volume transactions, Glassnode guesses that the institutional investors might have been behind the spike in\u00a0the $1 million\u2013$10 million transaction group. <\/p>\n<p>Moreover, the platform noted that the Bitcoin network processed the said bulky transactions as the BTC\/USD exchange rate traded lower from $65,000 to below $30,000 in the second quarter of 2021.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/a251dcbd-6dd0-4928-8069-513acf65c9b8.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin transfer volume breakdown of transactions above $1 million. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>\u201cAs the market traded down to the lows of $29k in late July, the $1M to $10M transaction group spiked markedly, increasing dominance by 20%,\u201d\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-32-2021\/\">wrote<\/a> Glassnode in a report from Monday.<\/p>\n<blockquote><p>\u201cThis suggests that these large-size transactions are more likely to be accumulators than sellers and is again, fairly constructive for price.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Small_transactions_lose_dominance\"><\/span>Small transactions lose dominance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Glassnode provided additional volume data that showed a structural decline\u00a0in small-size transaction dominance.<\/p>\n<p>In detail, transactions of less than $1 million fell by half \u2014 from 70% in September 2020 to 30%\u201340% dominance in March\u2013May 2021. The declines suggest that small investors capitulated their Bitcoin holdings to secure early profits.<\/p>\n<p>During the mid-May crypto market crash, the dominance fell to nearly 20% but recovered back to the 30%\u201340% range as Bitcoin\u2019s price consolidated above the $30,000 support level. It remained within the said percentage range during the recent run-up to levels above $46,000.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/728856a0-a5d9-407e-b5a8-35f16ec627de.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin transfer volume breakdown of transactions below $1 million. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>\u201c[The data] clearly demonstrates a new era of institutional and high net worth capital is flowing through the Bitcoin network since 2020,\u201d Glassnode asserted.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Hodl_sentiment_returns\"><\/span>Hodl sentiment returns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>More evidence of Bitcoin accumulation came from Glassnode metrics that tracked the hodling behavior of investors.<\/p>\n<p>The \u201cLong and Short Term Holder Supply Ratios\u201d indicator reported that the Bitcoin supply owned by long-term holders (LTH) reached an all-time high of 82.68%. Meanwhile, the short-term holders (STH) supply continued to decline, hitting 20% and suggesting holding and coin maturation in play.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/c03b6f12-7dc1-4f57-9d8b-9a1a40510550.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin long and short term holder supply ratios. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Glassnode suggested that when the STH supply ratio reaches 20%, it follows with a major supply squeeze \u2014 i.e., a\u00a0supply shortage that typically drives the underlying asset\u2019s prices higher.<\/p>\n<p><strong><em>Related:\u00a0No, Bitcoin isn\u2019t entering a 2018-like bear cycle, new data suggests, as BTC targets $45K<\/em><\/strong><\/p>\n<p>But who will accumulate the remaining 5% of the adjusted supply? A Glassnode metric suggests coins aged between one week and three months represent a large portion of the liquid supply.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/e191e489-2be0-4534-9121-bb4bb74c137d.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin HODL waves for coins aged between 1 week and 3 months. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>\u201cWe can see that after the uptrend in Q1 (old coin distribution), these age brackets have fallen back to bear market equilibrium level of around 12.5% to 15% of supply,\u201d wrote Glassnode, citing the chart above.<\/p>\n<blockquote><p>\u201cThis downtrend indicates that coin maturation is indeed in play, and that many of the 2021 bull market buyers have stuck around to become strong hand HODLers.\u201d<\/p><\/blockquote>\n<p>Bitcoin was trading at $45,930 at the time of writing, down 0.73% from its intraday high.\u00a0<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/large-hodlers-accumulate-bitcoin-below-50k-as-btc-transactions-over-1m-soar\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Large hodlers accumulate Bitcoin below $50K as BTC transactions over $1M soar &#8221; Institutions have not left the Bitcoin (BTC) market even in the face of a 50%-plus bearish correction earlier this year, shows data provided by Glassnode. The blockchain analytics platform reported on Monday that the dominance of Bitcoin transactions exceeding $1 million&#8230;<\/p>\n","protected":false},"author":1,"featured_media":320273,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvODRjNTExMGEtNjNiYS00OGMyLWI1YTItZDVjMmNhY2RkM2MxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,81951,74937,113841,76643,74939,75150,75164,78261,72366,73785],"class_list":["post-320272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-datatrading","tag-hodl","tag-market-analysis","tag-market-update","tag-price-analysis","tag-tech-analysis","tag-data","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/320272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=320272"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/320272\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/320273"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=320272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=320272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=320272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}