Long-term Bitcoin (BTC) investors boosted their spending to a level that signals de-risking from the market, according to Glassnode, renowned blockchain analytics and intelligence company, yet hodling remains the primary investing method.
As per Glassnode, uncertain macroeconomic conditions are likely to have prompted a rise in long-term investors’ sell-offs last week, as well as shook some short-term holders out of their investments. Coins older than six months contributed for 5% of overall expenditure last week, a figure not seen since November last year.
The number of short-term holders (STH) who have held coins for less than 155 days continues to drop, but this is not due to selling. According to Glassnode, it is more common for STH to sell, stating that,
“(Selling) can only occur when large portions of the coin supply are dormant and crossing the 155-day age threshold, becoming Long-Term Holder supply.”
Bitcoin sale pressure: cause of worry? Think otherwise
As long as general sale pressure remains persistent, Bitcoin (BTC) accumulation patterns do not reflect bear market behavior. Moreover, despite the current surge in selling, more than 75% of the BTC circulating supply has been dormant for at least six months. This, according to Glassnode, indicates that investors are still primarily hodlers.
The sell-offs have occurred in a very solid market that has avoided any large swings up or down and has been range-bound for the majority of this year, according to Glassnode. This is supposed to be a means of delaying the end of a bear cycle’s surrender event. According to CoinGecko, there hasn’t been a big surrender since last May, when the price of Bitcoin (BTC) fell from $58,771 to $34,977 in a 15-day period.
The last time Bitcoin (BTC) accumulation approximated bear market behavior was from the May capitulation event to October.
Exchange outflows continue significantly, as mentioned in last week’s BTC market update. Last week, Coinbase experienced its largest withdrawals in over five years, with 31,130 BTC exiting the platform. These outflows reflect Bitcoin’s growing popularity as a must-have asset in a modern investor’s portfolio, as well as a growing reluctance to liquidate in a hurry.
At the publication, BTC was trading at $38,386.97.