The Bitcoin market is currently mute with the flow of money into Bitcoin slowing down, according to weekly insights by Glassnode. The research also finds that short-term holders are witnessing the most losses and are reportedly becoming long-term holders.
Additionally, there is a reduction in speculative trading, indicating that traders are being more conservative.
Most Bitcoin holders hold the asset for at least 155 days
Glassnode finds that the market is reaching equilibrium with the flow of money into Bitcoin slowing down in the last few months. The findings indicate that this type of slowdown is rare with major price movements likely to follow.
Meanwhile, short-term Bitcoin holders are reportedly bearing most of the losses. However, they are now holding the asset for more than 155 days, becoming long-term holders. However, most of these long-term holders are currently holding BTC at a loss.
The MVRV Ratio, which shows how much profit investors have made, has returned to its average value of 1.72. The Glassnode research explains that this signals a shift between a bull market and a bear market as the excitement from the Bitcoin ETFs has settled down. In addition, the Bitcoin sell-side risk ratio is also low, indicating that most transactions are happening at their purchase price.
The report also reveals that investors will make about $15 million a day if they sell their holdings, much lower than the $3.6 billion a day they would have made when Bitcoin hit its all-time high (ATH) of $73k in March.
Bitcoin racing towards $60K to give out more millionaires
In the early hours of August 28, Bitcoin briefly hovered in the lower range of $58,000. While BTC has recovered during the day, it remains under $60K. Despite the short-term weakness, Nate Geraci, the president of ETF Store, pointed out that Bitcoin is up 40% year-to-date (YTD). He explained that it has outperformed the S&P 500 by more than 20%.
Bitcoin briefly fell to a low of $58,034, a 24-hour drop of 6.5%. Ethereum hit a low of $2,392, a 24-hour drop of 9.4%. In the past 24 hours, the entire network has liquidated $313 million, of which long orders have liquidated $282 million and short orders have liquidated $31.36…
— Wu Blockchain (@WuBlockchain) August 28, 2024
Meanwhile, as per a report by New World Wealth and Henley & Partners, the number of Bitcoin millionaires has increased to 85,400. The figure indicates a 111% increase in a year. This is against the 95% increase in the total number of cryptocurrency millionaires, to 172,300, up from just 88,200 last year.
The approval of spot ETFs in the US has also helped to push the BTC price. In the last year, Bitcoin’s price has reportedly surged by 138%.
