TL;DR
- Over the past six months, investors have accumulated over 50,000 Bitcoins each month, amounting to $1.35 billion.
- Bitcoin is on the verge of a major price shift, pushed by the shaky geopolitical situation and lack of on-chain liquidity.
Bitcoin HODLers Have Gathered More Than 50k Bitcoin Monthly
Blockchain analysis company, Glassnode, reveals that persistent investors rapidly acquire Bitcoin (BTC), leading to decreased market liquidity.
Glassnode’s HODLer net position change highlights that investors, especially those known to retain coins for a minimum of 155 days, gather 50,000 BTC (valued at $1.35 billion) monthly.
The aggregate BTC maintained by these long-standing investors has hit a record high, exceeding 14.859 million BTC, representing 76% of the total circulating supply.
“Currently, over +50k BTC are being secured monthly by HODLers. This indicates a contracting supply and a general hesitation to make transactions.”
Glassnode’s recent weekly review stated
Coins that remain unspent on-chain for certain durations are termed dormant. A rise in coin dormancy signifies that coins are preserved in a non-liquid form for extended periods.
This can be interpreted as a reduced supply-driven force in the market, suggesting the possibility of a significant surge in price.
Bitcoin Price – On The Verge of Collapse
Should BTC dip below 27k in the upcoming days, brace for a turbulent period.
This would place it beneath the daily Bollinger Band moving average, hinting at a potential short- to mid-term downturn.
Even more crucial is that such a drop would validate a significant pushback from the weekly Bollinger Band moving average, which has consistently acted as a support and resistance throughout the current bearish phase.
The present trend resembles patterns from spring 2022 when BTC faced resistance at that weekly Bollinger Band moving average. The aftermath was a two-month price plummet.
A similar scenario might be on the horizon. It feels like we’re heading towards a double bottom. Given the rising claims of cryptocurrencies funding Hamas, this seems increasingly plausible.
For clarity, the Bollinger Band moving averages align closely with the 50 and 200-day averages.
Geopolitical Problems Drag Crypto Down, Bringing Bitcoin With It
Geopolitical tensions have heightened Bitcoin and crypto’s role as alternative financial systems.
As traditional currencies face instability due to sanctions, trade wars, and political unrest, many turn to decentralized assets to preserve wealth and ensure transactions.
This shift underscores crypto’s potential as a hedge against uncertainty, though it also attracts regulatory scrutiny, challenging the industry’s growth and mainstream acceptance.
However, while many think of the shaken stock market as good for crypto, think again. The correlation of Bitcoin and crypto with the whole market is still very high, and any disturbance can affect it.
While the metrics push it up as the liquidity is down due to the accumulation, the overall situation pushes it down.
Would Bitcoin endure this uncertain time without losing its $27k level?
Sam Farao
Sam is our pioneering figure in affiliate marketing and the blockchain space (prior to co-founding Coinweb.com). His ventures, including Netpixel Media and Captana, have set new benchmarks in the affiliate marketing industry, leading to a notable acquisition by Speqta AB for 31.5 million Norwegian kroner ($3.8 million USD). Farao's foray into blockchain technology is marked by the Lightbulb Man project, a blockchain-based art collection featuring NFTs, which sold out in one day! This highlights his role in merging the worlds...
