Long-term Bitcoin holders have collectively spent a milestone $10 billion to acquire the cryptocurrency and are refraining from selling as its price retreats from its 2021 all-time highs, according to an analyst.
“For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion,” CryptoQuant contributor Amr Taha stated in an August 27 post.
Long-Term Holders Less Prone to Panic Selling
The realized capitalization considers the price at which each Bitcoin was last transacted. According to crypto analytics firm Bitbo, it is “often compared to Market Cap to get a sense of the overall market vibe.”
Long-term holders, defined as those who have held Bitcoin for over 155 days, tend to be more resilient to market volatility. Taha explained that once holders surpass the 155-day mark,
“the likelihood of selling decreases significantly, meaning these holders are less likely to sell during short-term market fluctuations.”
Since Bitcoin's 29-day streak of trading below $69,000 began on July 30, selling pressure from long-term holders has “decreased 3.7 times,” noted fellow CryptoQuant contributor Axel Adler on August 27.
Currently, Bitcoin is trading at $59,404, down 5.47% over the past 24 hours, and has seen a minor weekly decline of 0.11% after reaching a high of $64,791, according to CoinMarketCap.
Bitcoin’s price has now fallen below the significant $60,000 level that traders have been monitoring closely.
The current price is approximately 8% lower than the average price paid by long-term holders, which stands at $64,490, as per Chainexposed data. Despite this, many crypto traders anticipate further price declines, which could lead long-term holders to continue holding in hopes of better profit-taking opportunities in the future.
“Bitcoin will retrace deep enough to convince you that the Bull Market is over,” remarked the pseudonymous crypto trader Rekt Capital.
Traders consider $50,000 a crucial support level; a breach of this level could push Bitcoin into a zone of uncertainty.
This development follows a June report from Glassnode that found approximately three-quarters of all circulating Bitcoin has not been moved in the past six months or longer.
