According to the analytical platform Glassnode, 95 percent of the bitcoins currently featured in transactions have been mined by miners over the past three months. And only 5 percent of the coins used in transactions are older than 90 days. In other words, now the vast majority only move “young coins”, while the rest of the bitcoins are stored in the wallets of investors or on exchanges. In addition to this, addresses that have held BTC for at least three years have significantly increased the volume of the asset. in the last 6-12 monthswhile new holders have been taking profits since the beginning of 2020. Let’s talk about the specifics of investor behavior in more detail.
To begin with, we note that such data on the activity of cryptocurrency holders can be obtained from an open blockchain, information in which anyone can get. The so-called UTXOs or the withdrawals of unspent transactions allow judging the age of certain coins. In fact, these are the remainders of the cryptocurrency that the user receives to his wallet after each transaction. Thanks to UTXO, it is possible to determine when a particular coin was last moved.
What is happening with the cryptocurrency market
Glassnode analysts classify “long-term holders” of the main cryptocurrency as those who own bitcoins longer than 155 days… Accordingly, short-term holders are investors who move coins later than this date. Experts note that the first category of market players has more experience, accumulates BTC during bearish trends and fixes some of the profits in a bull market. The second category prefers to make transactions with coins much more often., reports Cointelegraph.
Green color indicates an increase in the share of coins that have not been moved for a very long time, red – a drop in the number of recently mined coins that are held in wallets
At the moment, about 10.85 million BTC – or 58 percent of the circulating volume of coins – at the disposal of long-term holders can be sold for a plus since the moment they last moved on the blockchain. Likewise only 5.3 million BTC from wallets of short-term holders can be sold at a profit. This means that experience still makes itself felt and allows you to act more confidently in various situations. As a result, it ends up with more profit.
Potential losses of two types of investors
In addition, analysts have identified another interesting detail: the majority of market players from the first category now hold more coins than during the previous bull cycle. There is also an increased influx of new Bitcoin users, which is quite natural against the background of the rapid growth in the price of cryptocurrency in the past and at the beginning of this year.
By the way, about newly minted crypto investors. It is likely that most of them will enter the market with money printed by the US government the day before. These are aid checks amid the fight against the fallout from the COVID-19 pandemic. This weekend, US President Joe Biden signed an extradition order to the Americans $ 1,400 each. In total, the government spent on this program of economic assistance $ 1.9 trillion.
Experts have announced in advance that some of this money will be used to purchase cryptocurrency. And in general, due to the partial depreciation of the dollar against the background of mass emission, coin rates should also go up.
The volume of the influx of new users against the background of bullran breaks all records
According to a recent survey by investment finance firm Mizuho Securities, 2 out of 5 peoplewho received the checks are going to spend the money on investments. Most of them consider Bitcoin as their main investment, Decrypt reports. During this survey, experts from Mizuho Securities asked for an opinion 235 respondents. Their average age reaches 41, and their average income is about $ 55,000 a year.
According to the firm’s estimates, at least 40 billion from the amount of economic aid can be poured into the crypto market. This is quite a serious amount, even taking into account the fact that now the capitalization of Bitcoin exceeds the mark of trillion dollars… In general, we believe that making such conclusions, taking into account the small number of people interviewed, is a rather hasty decision. However, in any case, the receipt of checks by the Americans should positively affect the value of both traditional and digital assets.
Obviously, the conclusions from analysts’ reports are positive. Experienced investors, who have already experienced one stage of growth in the cryptocurrency market in 2017, see the potential in coins and expect to capitalize on their price jumps. And this is a logical decision, taking into account the payments of financial assistance to residents of the United States, who can send money specifically to purchase Bitcoin and other coins.
Now fans of blockchain assets have to wait and watch what is happening in the niche. Most likely, the massive influx of deposits and the purchase of coins from newly minted cryptocurrency investors will be noticeable on the charts.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
