{"id":455231,"date":"2022-05-31T00:30:00","date_gmt":"2022-05-30T21:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/on-chain-data-shows-bitcoin-long-term-holders-continuing-to-soak-up-supply-around-30k\/"},"modified":"2022-05-31T00:30:00","modified_gmt":"2022-05-30T21:30:00","slug":"on-chain-data-shows-bitcoin-long-term-holders-continuing-to-soak-up-supply-around-30k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/on-chain-data-shows-bitcoin-long-term-holders-continuing-to-soak-up-supply-around-30k\/","title":{"rendered":"# On-chain data shows Bitcoin long-term holders continuing to \u2018soak up supply\u2019 around $30K"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a20b4edbb31f\" 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-6a20b4edbb31f\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/on-chain-data-shows-bitcoin-long-term-holders-continuing-to-soak-up-supply-around-30k\/#%E2%80%9D_On-chain_data_shows_Bitcoin_long-term_holders_continuing_to_%E2%80%98soak_up_supply_around_30K_%E2%80%9C\" >&#8221; On-chain data shows Bitcoin long-term holders continuing to \u2018soak up supply\u2019 around $30K &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/on-chain-data-shows-bitcoin-long-term-holders-continuing-to-soak-up-supply-around-30k\/#Signs_of_heavy_accumulation\" >Signs of heavy accumulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/on-chain-data-shows-bitcoin-long-term-holders-continuing-to-soak-up-supply-around-30k\/#Long-term_hodlers_are_still_active\" >Long-term hodlers are still active<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_On-chain_data_shows_Bitcoin_long-term_holders_continuing_to_%E2%80%98soak_up_supply_around_30K_%E2%80%9C\"><\/span>&#8221; On-chain data shows Bitcoin long-term holders continuing to \u2018soak up supply\u2019 around $30K &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Bear markets are typically marked by a capitulation event where discouraged investors finally abandon their positions and asset prices either consolidate as inflows to the sector taper off or a bottoming process begins.\u00a0<\/p>\n<p>According to a recent report from Glassnode, Bitcoin hodlers are now \u201cthe only ones left\u201d and they <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to be \u201cdoubling down as prices correct below $30K.\u201d<\/p>\n<p>Evidence of the lack of new buyers can be found looking at the number of wallets with non-zero balances, which has plateaued over the past month, a process that was seen after the crypto market sell-off in May of 2021. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/312ddbca-d3c8-4359-9152-57bd0205adf0.jpg\"><figcaption style=\"text-align: center;\"><em>Number of Bitcoin addresses with a non-zero balance. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Unlike the sell-offs that occurred in March 2020 and November 2018, which were followed by an upswing in on-chain activity that \u201cinitiated the subsequent bull runs,\u201d the most recent sell-off has yet to \u201cinspire an influx of new users into the space.\u201d Glassnode analysts say this suggests that the current activity is predominantly being driven by hodlers. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Signs_of_heavy_accumulation\"><\/span>Signs of heavy accumulation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While many investors are disinterested in BTC&#8217;s sideways price action, contrarian investors view it as an opportunity to accumulate, a point evidenced by the Bitcoin accumulation trend score which \u201chas returned a near perfect score above 0.9\u201d for the past two weeks. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/5319c74a-3f23-40d9-aa10-9f8867d13ef9.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin accumulation trend score. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>According to Glassnode, high scores on this metric during bearish trends \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly trigger after a very significant correction in price as investor psychology shifts from uncertainty to value accumulation.\u201d <\/p>\n<p>The idea that Bitcoin is currently in an accumulation phase was also noted by CryptoQuant CEO Ki Young Ju, who posted the following tweet asking his <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers \u201cWhy not buy?\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/b5c017b1-ee2b-4bd8-a1eb-258f864e2ce1.jpg\"><\/figure>\n<p>A closer look at the data shows that the recent accumulation has been largely driven by entities with less than 100 BTC and entities with more than 10,000 BTC. <\/p>\n<p>In the recent volatility, the aggregate balance of entities holding less than 100 BTC increased by 80,724 BTC, which Glassnode noted was \u201cremarkably similar to the net 80,081 BTC liquidated by the LUNA Foundation Guard.\u201d <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/025a8794-f757-4535-bf82-d6f3fcbe2b9f.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin supply held by entities with less than 100 BTC. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Entities with holdings in excess of 10,000 BTC added 46,269 Bitcoin to their balance during this same time period, while entities holding 100 BTC to 10,000 BTC \u201cmaintained a more neutral rating around 0.5, suggesting relatively little net change to their holdings.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Bitcoin\u2019s recent gains have traders calling a bottom, but various metrics remain bearish<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Long-term_hodlers_are_still_active\"><\/span>Long-term hodlers are still active<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Long-term Bitcoin holders appear to be the main driving force behind the current price action with some actively accumulating and others realizing losses at an average of -27%.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/f5ac7a01-442c-4c64-969a-1426da8254e0.jpg\"><figcaption style=\"text-align: center;\"><em>Bitcoin long term holder spent output profit ratio. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>Despite the selling witnessed by some in the long-term holder cohort, the total supply held by these wallets recently returned to its all-time high of 13.048 million BTC. <\/p>\n<p>Glassnode said, <\/p>\n<blockquote><p>\u201cUnless significant coin redistribution occurs, we can therefore expect this supply metric to commence climbing over the course of the next 3-4 months, suggesting HODLers continue to gradually soak up, and hold onto supply.\u201d<\/p><\/blockquote>\n<p>The recent volatility may have pushed out some of the most dedicated Bitcoin holders but the data shows that a majority of serious holders are unwilling to spend their supply \u201ceven if it is now held at a loss.\u201d <\/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><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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