Long-term Bitcoin holder buys hit $10B mark as price slips below $60K
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Long-term Bitcoin investors cross $10 billion as the price falls below $60,000.
According to an expert, long-term investors have collectively invested $10 billion in the cryptocurrency and are reluctant to sell as its price retreats from 2021 all-time highs.
“For the first time, the realized cap of long-term investors has exceeded $10 billion,” CryptoQuant author Amr Taha wrote in an August 27 note.
Long-term investors are less susceptible to panic selling
Realized cap affects the price at which each Bitcoin
BTC (down to $58,980) was last sold. As crypto analytics firm Bitbo noted, the realized cap is “often compared to the market cap to get an idea of the overall state of the market.”
Long-term holders are those who have held Bitcoin for more than 155 days. Taha explained that once holders have crossed the 155-day mark, “the probability of selling decreases significantly, meaning that these users are less likely to sell during short-term market fluctuations.”
Since Bitcoin began its 29-day streak below $69,000 on July 30, the selling pressure from long-term traders has “decreased by a factor of 3.7,” Axel Adler, co-creator of CryptoQuant, noted on August 27.
At the time of writing on August 28, Bitcoin’s price has reached $59,404, down 5.47% in the past 24 hours. The asset is down slightly by 0.11% for the week after peaking at $64,791, according to CoinMarketCap data.
According to research from ChainExposed, Bitcoin’s current price is about 8% below the $64,490 average price that long-term investors have been paying for the coin.
However, crypto traders believe that Bitcoin’s value could continue to decline, forcing long-term investors to wait even longer for better profit opportunities.
“Bitcoin will drop in value enough to convince everyone that the bull market is over,” added pseudonymous crypto trader Rekt Capital.
Many traders see $50,000 as a key collateral level, and if it is broken, it could send Bitcoin into a zone of uncertainty.
This comes after a Glassnode report in June found that about three-quarters of the total Bitcoin supply had not been moved in the past six months or more.
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