Bitcoin long-term holders are re-emerging as the price of BTC continues to rise, according to recent analysis. Philip Swift, the creator of LookIntoBitcoin, a data resource platform, observed classic bull market behavior among “older” BTC investors.
Despite debates over how high BTC’s price could climb in the current price cycle, the behavior of long-term holders remains consistent. The on-chain spending velocity has increased, indicating that profit-taking activity is occurring due to the more than doubling of BTC/USD this year.
Swift shared a chart of the Value Days Destroyed (VDD) Multiple, a metric derived from the Coin Days Destroyed (CDD) metric, which measures the periods of inactivity whenever BTC moves on-chain. The VDD takes into account the current BTC price and compares the 30-day result with the 365-day average. Swift clarified that the VDD Multiple helps identify when older coins begin flooding the market for sale. This typically happens when longer-term participants decide to capitalize on price acceleration during major bull market cycles.
The current VDD Multiple is 1.32, slightly below the peak of 1.37 reached in April 2023. Swift interprets this as a sign of a “1st stage bull market.” Checkmate, the lead on-chain analyst at Glassnode, another data firm, described the findings as “remarkable” and emphasized the consistency of human behavior in response to similar stimulus.
Additionally, data from Glassnode highlights how appealing it may be for hodler classes to cash out at current prices. The market-value-to-realized-value (MVRV) ratio for both long-term and short-term holders shows these investors are significantly profitable. Long-term holders, defined as coins that have been dormant for at least 155 days, are collectively worth 1.52 times more than when they last moved, while short-term holders are worth 1.12 times more.
Previous reports have also highlighted the increasing influence of short-term holders on BTC price action. The data reinforces the notion that as BTC reaches unprecedented price levels, both long-term and short-term holders are considering seizing their profits.
It is essential to note that this article does not provide investment advice or recommendations. All investment and trading actions involve risks, and readers are advised to conduct their research before making any decisions.
Source link
