According to the report published by Coinbase, even if speculators have escaped from the market in recent weeks, pushing the BTC price below $ 20,000, the long-term bitcoin investors continue to protect their assets.
“Recent Sales in Bitcoin Almost Entirely Made By Short-Term Investors”
“Recent BTC sales were almost exclusively driven by short-term speculators,” David Duong, Coinbase’s head of institutional research, said in the monthly outlook released Tuesday.
For Bitcoin, which is not offered for sale by long-term investors, perhaps this could be a sign that it will survive the bear market the Fed started and find success as a kind of fiat alternative or digital gold.
Duong described the holding of Bitcoin by investors as a positive indicator of sentiment that balances supply and demand in the face of speculator sales, a common feature of bear markets.
On-chain data tracked by Coinbase Analytics shows that investors currently hold about 77% of the total Bitcoin supply of 21 million.
While this figure is slightly lower than the 80% high at the beginning of January, it is still well above the 60% peak observed during the late 2017 bull run.
The data shows that a significant amount of assets have been transferred from speculators or traders to investors in 3.5 years.
The report, titled “The Elusive Bottom,” defines long-term investors as wallets that have held BTC for at least six months.
Speculators, on the other hand, are sophisticated participants or individual traders who usually buy short-term assets and apply strategies to profit from short-term price fluctuations. Speculators and traders are more sensitive to macroeconomic factors such as changes in Fed policy.
*Not investment advice.