Old-school Bitcoin investors are not going anywhere despite major correction
The number of old-school Bitcoin investors is steadily increasing as the market continues to fall, according to glass knot string data.
As the metric suggests, the number of 5-7 year old Bitcoin wallets has increased significantly and reached an 8-month high. As the data suggests, 716,325 Bitcoin are currently “sitting” in wallets with no movement whatsoever since at least 2015, when the cryptocurrency was trading at approximately $300.
The reason for the growing number of dormant wallets has to do with at least two factors, including the worsening market downtrend and the changing nature of the digital asset market from being speculative in the medium term.
As additional on-chain data suggests, the number of mid- and long-term Bitcoin holders has significantly increased on the chain since 2017. Back in the “ICO-era,” the majority of market participants were in it for short-term gain rather than the fundamental value of the technology.
With continued industry evolution and institutional adoption, more and more private investors have begun to use cryptocurrencies as a way to hold funds during times of high inflation or as tools to risk exposure.
While the number of long-term holders increased, mid-term holders that got into it had been actively dropping their holdings as the price of the first cryptocurrency dropped by 40% already.
At press time, Bitcoin is trading at $38,000 and remains on a streak of positive trading days. But as market data suggests, the majority of traders are currently staying out of the market awaiting significant moves in the stock market.
