Bitcoin held in long-term wallets has reached a significant milestone of $10 billion, despite the cryptocurrency’s price slipping below $60,000.
An analysis reveals that long-term Bitcoin holders, who have collectively spent over $10 billion acquiring the digital asset, are showing signs of holding firm even as prices retreat from their 2021 highs. This behavior suggests a reluctance to sell during short-term market fluctuations.
A Historic Milestone for Long-Term Holders
“For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion,” noted CryptoQuant contributor Amr Taha in a recent post. The realized capitalization metric considers the price at which each Bitcoin was last transacted, providing insights into market sentiment. According to crypto analytics firm Bitbo, this metric is often compared to Market Cap to gauge overall market conditions.
Long-term holders, defined as those holding Bitcoin for over 155 days, are less prone to panic selling. Taha highlighted that once investors surpass the 155-day mark, their likelihood of selling significantly decreases, making them less susceptible to short-term market volatility.
Selling Pressure Decreases as Prices Decline
Since Bitcoin began its 29-day stretch of trading below $69,000 on July 30, selling pressure from long-term holders has notably decreased, with a 3.7-fold reduction, according to CryptoQuant analyst Axel Adler. As of the latest data, Bitcoin is trading at $59,404, a 5.47% drop over the past 24 hours and down slightly on the week.
The current Bitcoin price stands about 8% below the average price paid by long-term holders, which is $64,490, according to Chainexposed. Despite this, many crypto traders believe the price could dip further, potentially causing long-term holders to maintain their positions longer in anticipation of better profit-taking opportunities.
Pseudonymous crypto trader Rekt Capital suggested that Bitcoin’s decline might continue to the point where some investors doubt the ongoing bull market. The $50,000 level is widely viewed as a critical support, with its breach possibly pushing Bitcoin into a zone of uncertainty.
This latest development follows a June report from Glassnode, which found that approximately three-quarters of all circulating Bitcoin has remained unmoved for at least six months. This indicates a significant portion of Bitcoin is held by long-term investors who may be waiting for more favorable market conditions.
