The Rise of the Bitcoin Long-Term Holders
Bitcoin is starting to look like that last slice of pizza at a party: everyone wants it, but no one is daring enough to reach for it. Thanks to recent data, we now know that over 76% of Bitcoin is hibernating in the hands of long-term holders (LTHs). This is the highest percentage we’ve seen in Bitcoin’s history, eclipsing the previous record set in 2015.
Charles Edwards, founder of Capriole Investments, recently tweeted: “A record 76.2% of the Bitcoin network is locked up with long-term holders today.” Let’s not sugarcoat it: less liquid supply equals more competition for the remaining coins, and that’s a math problem no one wants to face at the moment.
The Bear Market Diary: Holding Strong
Remember mid-2021? Yeah, that was a healthy bear market that had many shaking in their boots. Yet, here we are. LTHs have increased their Bitcoin exposure dramatically over the past few years despite the rollercoaster ride of prices. It’s like watching a group of survivalists stock up on canned beans while the world is in chaos.
Supply & Demand: The Classic Tug-of-War
As Edwards pointed out, while the demand for Bitcoin isn’t quite where it was in 2015, it’s definitely on the rise. He states: “But in reality, demand has increased quite a lot since 2015, so it should put even more upward pressure on price for this cycle.” This means that while the supply is dwindling like an ice cream cone on a sunny day, demand is revving its engine for a potential price surge.
The Speculation Side of the Coin
And then there are the short-term holders (STHs), or as I like to call them, the Bitcoin thrill-seekers. These are the folks playing the price guessing game, and they’re currently keeping a close watch on the realized price of their investments. Holding onto that sweet $27,000 mark is crucial, and Bitcoin has been doing just that—holding steady at around $28,000.
Final Thoughts: A Cautionary Tale
While Bitcoin’s trajectory seems promising, it’s not without its risks. Investing in this market is like attending a three-hour movie with no popcorn. Make sure to do your homework and navigate these waters carefully. Remember, this isn’t investment advice; it’s just a friendly nudge to lace up your boots before stepping onto the battlefield of crypto trading.
+ There are no comments
Add yours