In recent months, the world of cryptocurrency has been buzzing with activity, with Bitcoin, the world’s most popular cryptocurrency, experiencing a wild ride. According to data by CryptoQuant, there has been a significant shift in the balance of Bitcoin holdings between short-term and long-term holders.
As per the data, long-term holders (those who have held Bitcoin for more than six months) currently hold 76.8% of all Bitcoins in circulation, while short-term holders (those who have held Bitcoin for one day to six months) hold 22.12%. This indicates that the majority of Bitcoins are held by investors who are looking to hold on to their investments for the long term.
Interestingly, the most value is held in the 10-1k BTC band, which accounts for nearly 50% of all Bitcoins. This band represents a significant amount of wealth in the Bitcoin ecosystem, and its significance cannot be overstated.
The data also reveals changes in short-term and long-term holders’ balances from the $15,000 level of Bitcoin on November 21 until now. Long-term holders have been increasing their balances in the 2-3 year and 5-7 year age bands, while short-term holders have been increasing their balances in the 1-3 month and 3-6 month age bands.
However, it’s worth noting that short-term holders’ age bands have seen selling pressure in addition to accumulation. This suggests that these investors are more prone to panic selling during times of volatility.
To understand the holding behaviors per cohort, analysts have been using a valuable metric called realized price-UTXO age bands. These metrics help to examine long-term and short-term trends, allowing investors to better understand market movements.
Based on Bitcoin cycles, the 1-3 month and 6-12 month bands can be considered support and resistance levels. The 1-3 month band effectively prevented Bitcoin from falling further during its most recent correction in early March. Additionally, when Bitcoin hit the 6-12 month band during the last bullish leg, its upward momentum was limited, with this index now acting as a barrier at $28K.
Overall, the data from CryptoQuant highlights the importance of understanding holding behaviors and market movements in the world of cryptocurrency. With Bitcoin experiencing such high levels of volatility, investors need to be vigilant and stay up to date with the latest metrics and trends.
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This article was republished from azcoinnews.com
