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Mature Bitcoin Wealth Taps an All-Time High — Diamond Hands Trend Highlights ‘Refusal to Spend’ – Featured Bitcoin News

Mature Bitcoin Wealth Taps an All-Time High — Diamond Hands Trend Highlights ‘Refusal to Spend’

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Since Bitcoin approached $25,000 about 44 days ago, the price of the crypto-asset has lost more than 17.88% against the US dollar. An Onchain analysis by researchers at Glassnode says the price drop has put short-term owners in “severe unrealized loss.” Long-term holders, on the other hand, are holding firm, and according to Glassnode researchers, numerous metrics “show a full-cycle detox.”

Long-term Bitcoin holders are holding tight

According to Glassnode and the recently written onchain newsletter, the crypto bear market continues to plague short holders. Ukuria On-Chain. While Bitcoin (BTC) has lost 17.88% against the US dollar since August 14th, 14-day statistics show that BTC is down about 9.3%, and year to date Bitcoin is down 53.2%.

Additionally, BTC is down 71.3% since the lifetime price of the crypto asset hit an 11-month high on November 10, 2021. Glassnode’s September 26th newsletter highlights the Bitcoin Realized Cap HODL Waves chart, which shows how BTC’s long-term holders are holding firm.

According to data provided by Glassnode’s Telegram channel prior to the publication of the onchain newsletter, “coins older than 3 months now account for an all-time high (ATH) of 86.3% of all USD assets held in the BTC supply.” According to Glassnode’s report, the Realized Capitalization HODL Waves chart shows the US dollar wealth of individual age groups.

Mature Bitcoin Wealth Reaches All-Time High - Diamond Hands Trend Highlights

“When mature spending is heavily dampened, the degree of HODLing behavior is historically high,” says Glassnode. “In a binary system of young and mature coins alone, an increase in the wealth of a mature coin held in BTC directly leads to a corresponding decrease in the wealth of Young coins.”

As for long-term holders, Glassnode’s report titled “The Great Detox” says:

Currently, the wealth held by mature coins is at ATH because the dominant investor behavior is a refusal to spend despite highly uncertain global markets. Thus, almost all market activity is driven by the same group of young coins that repeatedly change hands. As the number of young circulating coins gradually decreases, it could lead to a potential contraction in supply if and when the market turns.

Bitcoin’s “Bottom Process” and 4 Year Trend

Many believe in bitcoin’s long-term play. “After Months of Waiting, Bitcoin’s Short-Term Cost of Ownership Basis Has Dropped Below a Fourth, Will Clemente wrote September 24th. “This shows the underlying process. The next cross to look at is a short-term bull cross that is long-term.”

Mature Bitcoin Wealth Reaches All-Time High - Diamond Hands Trend Highlights
Glassnode Cost Based Analysis Chart shared by Will Clemente on Sep 24, 2022.

Microstrategy’s Michael Saylor has talked about BTC’s four-year cycles several times. On September 26, as the US dollar continued to pressure a major basket of fiat currencies, Saylor spoke about bitcoin’s relationship with the dollar over four years.

“Over the past year, currencies have collapsed against the dollar,” Saylor tweeted. “CAD -8%, CNY -9%, AUD -11%, ZAR -17%, KRW -18%, EUR -18%, PLN -21%, GBP -22%, JPY -23%, TRY -52% .Over the past four years, the dollar has collapsed -67% against bitcoin,” the Microstrategy executive added.

Tags in this story

4 Year Cycle, Bitcoin Wealth, BTC Wealth, Bull Cross, Coin Age, Cost Basis, Detox, glassnode, Glassnode Researchers, Glassnode Stats, HODL Waves Chart, Hodlers, Holders, Holds, Holds Strong, Mature Bitcoins, michael saylor, Michael Saylor, Director of Microstrategy, No spend, Onchain data, Ukuria On-Chain, US dollar, USD, Will Clemente, Young bitcoins

What do you think about long-term holders holding strong as opposed to short-term holders? Let us know what you think about this topic in the comment section below.

Jamie Redman

Jamie Redman is the news director of Bitcoin.com News and a financial technology reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols appearing today.




The authors of the picture: Shutterstock, Pixabay, Wiki Commons

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