People holding Bitcoin have always been an interesting group of individuals, As it turns out, the vast majority of them have spent their time accumulating more BTC, instead of spending. This is a very bullish trend to kick off the new year
Bitcoin Holders are Buying
Depending on how one wants to look at cryptocurrencies, they are either an investment or a speculative tool, for most. Others see it as the future form of money and finance. Living up to these latter expectations has proven incredibly difficult over the years. Bitcoin’s lack of scaling and adoption are not helping these matters much either.
What is rather interesting is how the people who hold Bitcoin behave. Often referred to as “holders“, one would expect these people to be virtually inactive on the market. Statistics by Glassnode confirm that this is anything but the case.
According to the analytics firm, Bitcoin holders are plenty active on exchanges and trading platforms. During the first 170 days of the year, they have been actively buying up BTC. Considering how there have been some pretty big ups and downs for the BTC price, that is not entirely surprising. A true “holder” will look at the long-term game, rather than chasing quick profits.
Of those 170 days, 154 days were spent accumulating BTC. Some days noted a very active buying sprees, whereas others seemed a bit meek in comparison. When the prices hit a low in early March, several holders kept accumulating by buying at these lower prices. That is normal behavior, as cost-averaging is crucial with any investment.
Even the subsequent Bitcoin price increase has yielded a lot of buying pressure. Holders are more than happy to hold when the price is going up and keep cost-averaging down when volatility ensues. In June of 2020, there has been a steady increase in overall holdings, which is intriguing to keep an eye on.
A few Dips Before the Bull Run?
No one can blame holders for selling off some holdings during a bear market. The price drop between February and early March triggered some negative net changes for holders. Surprisingly, none of these changes are that significant. At most, all holders combined decreased their position by 5,000 BTC. Nothing to be worried about, considering how the positive net position changes often hit 40,000 BTC or more.
All in all, the holders managed to acquire an additional 233,000 BTC during the first 170 days of 2020. If that trend sets the tone for the rest of the year, a bull trend becomes virtually inevitable. For now, the first order of business is seeing Bitcoin surpass $10,000 and stay there for an extensive period of time.
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