Why Bitcoin Long-Term Holders Seem To Be Losing Interest In BTC

Christian Encila

2 years ago

4 mins read

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Current market conditions hinder bullish market movements even for Bitcoin, which is arguably the king of cryptocurrencies. Recently, a crypto analyst named nino released an analysis showing that long-term Bitcoin positions are being liquidated.

As this develops, experts in the cryptocurrency market have warned that the U.S. Federal Reserve’s efforts to rein in inflation through monetary tightening are unlikely to ease any time soon, thus has the potential to impact on BTC price.

Warming Up For The Crypto Winter

Nino used the Long Term Output Profit Ratio indicator. This measures whether long-term holders who sold their holdings are taking profit.

As of this writing, Bitcoin is trading at $16,855, down 1.9% in the last seven days, data from Coingecko shows.

Nino found that after the CPI and FOMC announcements, Bitcoin values saw significant fluctuation.

Soon after this occurred, the LTOPR skyrocketed. Many long-term Bitcoin holders may have cashed out their holdings at this time.

However, glassnodealerts recently tweeted that the holders of 1 Bitcoin increased to a new all-time high of 973,148.

As long positions get liquidated by long-term investors, new investors will grab the newly distributed token at a lower price.

📈 #Bitcoin $BTC Number of Addresses Holding 1+ Coins just reached an ATH of 973,148

View metric:https://t.co/s7tx1xxyz3 pic.twitter.com/FydDXwa8o9

— glassnode alerts (@glassnodealerts) December 18, 2022

Retail investors are not the only ones getting in on the fun. Whale interest seems to increase as well, as addresses holding more than 100 BTC increased to 16,120 which is a one-year high.

BTC addresses holding 100 or more coins reach one-year high. Source: Glassnode

These increases show that although the overall sentiment is very pessimistic, investors remain hopeful for Bitcoin and crypto in general.

More Developments, Both Controversial And Not

BTC appreciated 0.4% in the past 24 hours to its current price of $16,855. But this might increase in the next few days or months as Russia looks on the cryptocurrency market to circumvent sanctions.

According to a report by Newsweek, Russia is contemplating the use of cryptocurrency as the war-weary nation seeks to bolster its coffers in the face of severe Western sanctions imposed in reaction to President Vladimir Putin’s war in Ukraine.

Crypto total market cap still below the $800 billion mark today at $771 billion | Chart: TradingView.com

Investors In For The Long Haul

However, this might also pose a threat to BTC that will enter circulation in the sanctioned country, but with no present legislation in the Western world regarding cryptocurrencies, we can possibly see a rise in price once Russia actually implements its new law.

Currently, BTC is trying to regain ground above its 50% Fib level while being supported at $16,452. A price close above the 50% Fib level would secure positive investor sentiment.

Meanwhile, CoinGlass data also shows that investors who bought BTC are in it for the long-term with long positions are outnumbering short positions.

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.