Showing posts with label crypto prices. Show all posts
Showing posts with label crypto prices. Show all posts

Bitcoin Is Being Transferred Off Of Exchanges At The FASTEST Rate Ever - What Will Happen When HODLers DOMINATE The Market?

 

Bitcoin 2021

Despite Bitcoin's slow recovery from the $52k to $45k plunge earlier in the month, analytic firm Glassnode recorded the transfer of $1.2 billion of bitcoin off major exchanges.

Bitcoin being taken off exchanges is a clear sign that the owner is storing it instead of keeping it on an exchange where they can easily sell it.

This confirms that bitcoin accumulation continued as the price fell.

How Many Are Truly HODLing? Here's the numbers...

Long-term holders (LTH) are those who have owned their BTC for more than 155 days, they purchased it before mid-April, while short-term holders ( STH ) bought after the historical high on April 14.

In total, short term holders have amassed 16.8% of bitcoin's supply in the last five months, or about 3.16 million bitcoins.

While long term holders now own 79.5% of bitcoin's supply.

Signs Of What's To Come...

In the graph below, you can see two things: long term holders are at a historical high, and the accumulation of Bitcoin off-exchanges creates a supply shortage that typically triggers a price increase.

"Accumulation highs precede a price high" the report states.

Bitcoin stats 2021

The amount of Bitcoin that moves from short to long term holders per month averages 421,000. This rate is expected to continue into the final quarter of the year, when true scarcity could drive bitcoin to record-breaking prices.

If FOMO kicks, it all may happen at a record-breaking speed as well.

So - be ready.

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Author: Mark Pippen
London News Desk / Breaking Crypto News



The HYPER-BULLISH Effect: Huge Increase In Long-Term HODLing, Coins Moving To Secure Offline Storage - Leaves SHRINKING Available Supply On Exchanges...

Cryptocurrency holding study chart

When looking at the amount of Bitcoin or Ethereum that has been held for more than 6 months by the same person/entity, we immediately can conclude one clear fact - crypto investors believe the market is nowhere near the top.

When investors believe the top is approaching, we will see more short-term trading activity as well coins moving back on to exchanges, so they'll be ready to trade.

Instead, we're seeing the complete opposite - investors holding coins longer, and investors unconcerned with being able to sell their Bitcoin or Ethereum quickly.

Investors main concern:  security storing their crypto....

Which is why huge quantities have been taken off exchanges and placed into offline cold storage.

The study of how long coins were being held by the same investor was conducted by Glassnode, who says their long-term holding charts indicate "a strong HODL conviction" in the current market.

The Hyper-Bullish Effect...

We're talking about the most basic fundamentals behind supply and demand - and what we're seeing is a supply being accumulated and removed from the open market, while demand continues to grow. 

This is a combination of factors that sends prices (of anything) upwards fast, as new buyers entering the market are left in bidding wars over a dwindling supply. 

Until recently, crypto investors have overwhelmingly had one thing in common - thinking they may have to sell it all in a moments notice.  That's why this strong trend in the opposite direction is a true indicator of a new, different market, made up of investors confident in their investments. 

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Author: Ross Davis 
E-Mail: Ross@GlobalCryptoPress.com Twitter:@RossFM
San Francisco Newsroom / Breaking Crypto News