Bitcoin, once soaring high at $52,000, now finds itself facing a hurdle in crossing this psychological barrier. Despite this setback, the overall sentiment in the market remains positive. Long-term holders of Bitcoin have been observed collectively selling 200,000 BTC from their stash since the beginning of the year. This selling trend has been consistent for nearly three months, leading to a decrease in their balances over this period.
When comparing this current trend to the behavior seen in the previous bull market, notable differences emerge. In the previous cycle, holders reduced their BTC balances by roughly 15%, whereas in the current scenario, the decrease amounts to only around 1.5%. This indicates that while long-term holders are still engaging in some selling activity, they are doing so at a much slower rate compared to the previous cycle, suggesting a more cautious approach amidst the current market conditions.
Despite the selling activity by long-term holders, the market has seen a significant accumulation of Bitcoin by various investor cohorts. According to Ki Young Ju, CEO of CryptoQuant, Bitcoin inflows into accumulation addresses have surged to an all-time high of 25,300 BTC. These addresses, characterized by certain traits such as no outgoing transactions, holding a balance exceeding 10 BTC, and consistent activity over seven years, indicate a strategic effort by major holders to accumulate Bitcoin well ahead of anticipated price increases.
In recent months, there has been a noticeable shift in investor behavior regarding Bitcoin held on exchanges. Initially, over 17% of Bitcoin’s supply was on trading platforms, a record high. However, this trend has steadily declined, with the percentage of Bitcoin’s supply on exchanges dropping from 12.03% to 11.79% year-to-date. Recently, whales were observed moving over 18,000 BTC, valued at approximately $1 billion, from Coinbase to multiple non-exchange addresses, possibly custodial wallets. This movement further indicates a shift towards non-exchange storage of Bitcoin among major holders.
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