According to data from Glassnode, long-term holders currently own nearly 14.5 million Bitcoin (BTC). Despite the ongoing bear market, LTHs have seen a gradual uptrend over the past year and a half.
Blockchain analytics firm CryptoQuant recently announced that institutional investors (hedge funds, pension funds, commercial banks, insurance companies, etc.) are also showing an increasing interest in long-term holding of the major cryptocurrency.
So close to ATH
Glassnode numbers showed that BTC investors willing to hold the asset for the long term bought significant amounts between April and early July 2023. The largest crypto-asset has performed reasonably well these months, as it recently closed its second straight quarter in the green for the first time since 2021.
Long-term holders also showed increasing interest in BTC between September 2022 and the end of the year. Moreover, their accumulation efforts also continued during November’s FTX crisis, which shook the entire crypto industry to the core.
In fact, there are other market participants as well, such as those holding less than 1 BTC (referred to as “shrimps”) and those holding no more than 10 BTC (“crabs”) bought Significant amounts of Bitcoin were issued shortly after the collapse of the once-major cryptocurrency exchange.
Overall, long-term holders have amassed a total of 1.01 million BTC over the past 602 days and now own 14.47 million BTC (roughly 75% of the circulating supply). The value is just 20,000 BTC below the all-time high.
It’s worth noting that long-term holders were even more aggressive during the 2021 bull market. They amassed over 2.4M BTC between April and November 2021, when Bitcoin’s USD valuation was significantly higher than it is now, peaking at nearly $70,000.
Long-term BTC holders, source: Glassnode
Institutional investors are also flocking in droves
As revealed by CryptoQuant, institutional accumulation of Bitcoin is also increasing. The analytics firm further explained that investment firms, hedge funds, private funds and others are looking to join the ecosystem in the long term:
“Analyzing these funds’ holdings provides valuable insight into market dynamics and investor sentiment… Monitoring fund holdings not only provides an understanding of market sentiment, but also underscores institutional investors’ confidence in Bitcoin as a long-term asset.”
One reason for this excitement could be the long list of financial giants that have recently applied to launch a spot BTC ETF in the US. The uproar was sparked by the world’s largest wealth manager, BlackRock. A few days later, Fidelity Digital Assets, Invesco, WisdomTree, Valkyrie, and others followed suit, filling the entire crypto sector with optimism and hope.
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