Long-term Bitcoin holders continue to soak up supply at $30K, according to on-chain data.
Despite being in the red on certain BTC investments, data reveals that long-term investors are still buying Bitcoin in its current range. Bear markets are often characterized by a capitulation event, in which disgruntled investors quit their holdings and asset values either consolidate as inflows to the sector drop down or begin to bottom. Bitcoin holders are now “the only ones remaining,” according to a new report from Glassnode, and they look to be “doubling down as prices fall below $30K.” The number of wallets with non-zero balances has plateaued over the past month, a phenomenon that was observed during the crypto market sell-off in May of 2021, indicating a lack of fresh purchasers.
The aggregate balance of entities holding less than 100 BTC grew by 80,724 BTC during the recent volatility, according to Glassnode, which was “remarkably identical to the net 80,081 BTC sold by the LUNA Foundation Guard.” According to Glassnode researchers, this indicates that holders are driving the present activity. During the same time period, entities with more than 10,000 BTC added 46,269 BTC to their balance, while those with 100 BTC to 10,000 BTC “kept a more neutral rating around 0.5.” Long-term Bitcoin investors appear to be the key driving force behind the current price movement, with some aggressively acquiring and others seeing losses of up to 27%. Although recent volatility may have driven away some of the most devoted Bitcoin investors, evidence reveals that the bulk of serious investors remains hesitant to spend.