Glassnode analysts acknowledge potential final capitulation by Bitcoin investors

Geopolitical tensions and uncertainty surrounding the Fed’s policy have cooled hodler accumulation of bitcoins. Given the high share of “unprofitable” coins among short-term holders, a final capitulation cannot be ruled out, according to the Glassnode report.

#Bitcoin Long-Term Holders are accumulating at an annualised rate of over 12% of circulating supply per year.

This is 7.6x more than is being mined by miners.

We also introduce a new metric in collaboration with the great on-chain mind of @dpuellARK https://t.co/uX9clpisIf

— _Checkmate 🔑⚡🦬🌋 (@_Checkmatey_) March 14, 2022

Analysts have noted an uptick in selling by long-term Bitcoin investors. The share of coins aged six months and older rose to 5%, a level unusual for the previous few months. In the current environment, this should not be read as a sign of waning hodlers’ confidence, the researchers noted.

The metric Coin Days Destroyed, which tracks the movement of the oldest coins, continues to indicate Bitcoin accumulation as the preferred behaviour.

Analysts noted that before the end of previous bear cycles there was a final bulls’ capitulation. They did not rule out a repetition of a similar scenario in the future.

In the role of sellers may be short-term investors (holding period under 155 days). 82% of the Bitcoin at their disposal is currently in loss.

The share of BTC aged under six months reached a record low of 24.53% of the total supply, according to the HODL-waves metric. In other words, three out of four coins have been unmoved for more than half a year, despite market turbulence in recent months.

Another encouraging factor, in experts’ view, is the sharp outflow of Bitcoin from Coinbase wallets. It totaled 31,130 BTC ($1.18 billion), a record since July 28, 2017. The balance of the Coinbase Bitcoin wallet fell to 375,500 BTC, or 36.6% of the ATH in April 2020.

“This is a strong signal that investors increasingly view Bitcoin as a relevant asset in modern portfolios”, the experts concluded.

Earlier, the head of the DeVere Group forecast Bitcoin rising to $50,000 during March.

Earlier, Elon Musk stated that he was hodling cryptocurrencies in anticipation of rising inflation.

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