Despite a 21% correction in bitcoin from its ATH, 74% of coins have not been sold or moved in the past six months, according to data from Glassnode.
According to the HODL Waves chart, on August 11, the share of bitcoins held by long-term investors rose to 45%.
Earlier, analysts noted that the increase in the dominance of ‘aged’ coins indicates a firming of expectations for higher prices and a reluctance to close positions at current levels.
This holding trend leads to a reduction in available supply, which, with increased demand, will result in the asset’s appreciation.
Separately, experts highlighted that 80% of coins held by speculators are ‘underwater.’
Right now, over 80% of #Bitcoin Short-Term Holders are underwater, meaning their coin was acquired at a price above the current spot price.
This is similar to 2018, 2019, and mid-2021 which signalled many investors were at risk of panicking, and precipitating a bearish trend. pic.twitter.com/8jM7PBqh5z
— _Checkmate ??⚡☢️?️ (@_Checkmatey_) August 19, 2024
“This is similar to situations in 2018, 2019, and mid-2021. At that time, many short-term investors panicked and triggered a bearish trend,” they commented.
Previously, Glassnode determined that most Mt.Gox payout recipients do not intend to sell their coins. This potentially mitigates the scale of bearish pressure in the coming weeks.
Back in April, former BitMEX CEO Arthur Hayes predicted that the price of the first cryptocurrency would recover from the decline caused by price strengthening and rise to $100,000.