At the time of writing, BTC’s price has just surpassed $21,000; as a result, 45 percent of Bitcoin holders, according to Glassnode, have experienced a “on-paper loss.”
According to blockchain analytics company Glassnode, the bulk of Bitcoin has been “hodled” for at least three months in a manner that is very similar to prior Bitcoin market bottoms.
In a tweet on July 16, Glassnode revealed that more than 80% of the entire value held in Bitcoin denominated in US dollars (USD) had not been touched in at least three months.
This indicates that hodlers are “increasingly unwilling to spend at reduced rates” and that the “majority of BTC currency production is inactive,” according to the company.
As of this writing, the price of bitcoin is $21,013, over a seventy percent less than its all-time high of $69,044 in November 2021. According to cryptocurrency intelligence company IntoTheBlock, at the present pricing, almost 45% of Bitcoin owners are experiencing an on-paper loss.
The end of the bear markets in 2012, 2015, and 2018 all experienced comparable amounts of hodling, according to the Glassnode data.
In a paper published on July 12 titled “The Elusive Bottom,” David Duong, head of institutional research at Coinbase, stated last week that on-chain data indicated that recent BTC selling has been done “nearly solely” by short-term speculators. According to him, long-term BTC owners “have not been selling into the market slump.”
“These holders own a highly concentrated ~77% of the total supply, which is down slightly from 80% to start the year but still quite high,” he explained before adding:
“We see this is a positive sentiment indicator as we believe these holders are less likely to sell BTC during turbulent periods.”
The Bitcoin market had almost completely been cleansed of “tourists,” according to Glassnode researchers earlier in the month. They also noted that network activity was at levels consistent with the worst of the bear market in 2018 and 2019.
Since November 2021, the number of active addresses and companies has decreased, according to Glassnode, suggesting that neither new nor existing investors are engaging with the network.
Additionally, the company reports that the total number of non-zero BTC addresses has risen to 42,530,652—an all-time high.
