Investing.com | Editor Pollock Mondal
Published Nov 27, 2023 08:07AM ET
The cryptocurrency market is witnessing a notable phase as Bitcoin maintains its stability, with recent data indicating a strong holding pattern among long-term investors. On Sunday, Bitcoin’s price saw a slight increase to $37,722.93, while its market capitalization inched up to $737.55 billion, and the circulating supply remained at 19.55 million BTC.
A recent Glassnode report highlights that approximately 84% of Bitcoin’s supply is now profitable, mirroring a similar situation from November of the previous year. Despite these profits, there has been no significant move by long-term holders to liquidate their assets. This behavior suggests a potential ‘euphoria phase’ as holding patterns exceed the historical average by a considerable margin.
The accumulation trends have shown remarkable strength, with recent rallies outperforming those earlier in the year and contributing to a nearly forty percent price increase over the past month. Long-term holders are now controlling more Bitcoin than ever before, with holdings reaching an all-time high of about 14.9 million BTC. In contrast, the supply held by short-term holders has hit an all-time low of approximately 2.3 million BTC.
This disparity between long-term and short-term holder supply could indicate that substantial unrealized gains may be necessary before increased selling pressure occurs. The market trading has surged to year-to-date highs, with over 83% of Bitcoin now profitable. However, the modest unrealized profits have not yet compelled long-term holders to sell, despite strong accumulation signals and supply holdings that exceed historical averages by significant margins.
The current market conditions, coupled with the strategic holding by long-term investors, suggest a bullish sentiment that could potentially lead to an emerging bull market. As the crypto asset’s trading volume decreased significantly by over half to $8,399,760,280 on Sunday, the market is closely watching these trends to gauge the future trajectory of Bitcoin’s value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Written By: Investing.com
