Long-term investors exhibit fervent trust in their asset during a decline in volatility on the Bitcoin (BTC) exchanges that has never before been observed. The amount of Bitcoin (BTC) in circulation that can be attributed to “tourists” is just 2.56 million, which is a low number for current market cycle.
Bitcoin (BTC) Long-Term Holders’ supply prints new record: Glassnode
The supply of Bitcoin (BTC) Long-Term Holders regularly reaches new records, while the market as a whole has reached a point of “extreme apathy and exhaustion.” 14,600,000 Bitcoins (BTC) are in “diamond hands” as of right now, which is a record high for this indicator. In their The Week On-Chain #33 newsletter, Glassnode specialists discussed these computations.
The short-term holders’ tribe persisted in submission. The ultimate bottom for the fourth Bitcoin (BTC) cycle was reached when their share fell to 2,560,000 Bitcoins (BTC). Since the beginning of April 2023, this group of investors has been offsetting their Bitcoin (BTC) holding. As a result, researchers claim that the general attitude in the Bitcoin (BTC) community is still positive:
Overall, this shows that Bitcoin investors’ conviction levels are still remarkably high and that few of them are prepared to sell their holdings.
The volatility also decreased to multi-year lows at this period. The Bollinger Bands range fell only once in the last seven years, in January 2023.
As previously reported by U.Today, the 30-day projected volatility of Bitcoin (BTC) fell to levels not seen since the network’s 2009 debut.
Similar trends can be seen in the volatility indicators for Ethereum (ETH) over different time scales, and the total number of transaction fees is also declining.
“Very boring market may remain on the road ahead”
At this point in the market, investors are often reluctant to shift their funds on-chain. We cannot, however, conclude that all is gloomy. Since January 2023, Bitcoin’s (BTC) realised market capitalization has been rising as money has gradually entered the network.
The analysts at Glassnode are not at all shocked, since Bitcoin’s (BTC) performance is only experiencing a “bearish market hangover” similar to those seen in prior cycles. As a result, we shouldn’t anticipate instability in the upcoming weeks:
The very modest increase in the realised cap suggests that the market may continue to be very dull, choppy, and sideways in the near future.
The great majority of holders are underwater at the present prices, which makes a decline in volatility even more sensitive for market players, according to Glassnode specialists.
