As Bitcoin's price dips below the $60,000 mark, the total amount held by long-term Bitcoin holders has reached a significant milestone, surpassing $10 billion. This accumulation comes as these holders increasingly pull back from selling, despite the cryptocurrency's retreat from its 2021 all-time highs.
Long-term Bitcoin Holders Reach $10 Billion Milestone
According to a recent analysis by CryptoQuant contributor Amr Taha, the realized capitalization of long-term Bitcoin holders has exceeded $10 billion for the first time. This metric reflects the total value of Bitcoin at the price it was last sold and is often compared to the market cap to gauge overall market sentiment.
Long-term holders are defined as those who have held Bitcoin for more than 155 days. Taha explains that once this threshold is crossed, the likelihood of selling decreases significantly, making these holders less prone to panic selling during short-term market fluctuations.
Since Bitcoin began its 29-day streak of trading below $69,000 on July 30, selling pressure from long-term holders has decreased by 3.7 times, according to another CryptoQuant contributor, Axel Adler. This trend indicates a growing reluctance among these investors to sell their assets at current prices.
Bitcoin's Current Market Position
As of the latest data, Bitcoin is trading at $59,404, reflecting a 5.47% decline over the past 24 hours. Over the past week, it has experienced a slight decrease of 0.11%, after reaching a high of $64,791, according to CoinMarketCap. Notably, Bitcoin's current price is around 8% lower than the average price paid by long-term holders, which stands at $64,490, as reported by ChainExposed.
Despite the recent price drop, many in the crypto community believe that Bitcoin may see further downside, which could prompt long-term holders to continue holding out for better profit-taking opportunities. Pseudonymous crypto trader Rekt Capital commented, "Bitcoin will retrace deep enough to convince you that the Bull Market is over," highlighting the uncertainty in the market.
The $50,000 level is viewed by many traders as a crucial support level. If this level is breached, it could push Bitcoin into a zone of uncertainty, potentially leading to more volatility.
This cautious outlook comes after a June report from Glassnode revealed that around three-quarters of all circulating Bitcoin had not been moved in the past six months or more, underscoring the strong hands among long-term holders.
As the market continues to navigate these challenging conditions, the behavior of long-term Bitcoin holders will be a key factor to watch, particularly as they manage their positions in response to further price fluctuations.
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