FameEX Hot Topics | Long-Term Bitcoin Holders' Purchases Reach $10 Billion

Long-term Bitcoin holders have collectively spent a significant $10 billion to acquire the cryptocurrency, marking a key milestone in the market. These holders, who have kept their Bitcoin for over 155 days, are showing a strong reluctance to sell despite the cryptocurrency's price retreat from its 2021 all-time highs. According to CryptoQuant contributor Amr Taha, "For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion," as reported on August 27.

Taha highlighted that once Bitcoin holders surpass the 155-day mark, their likelihood of selling drops significantly, making them less prone to reacting to short-term market fluctuations. This behavior has been particularly evident since Bitcoin began trading below $69,000 on July 30, leading to a notable decrease in selling pressure from these long-term investors. Fellow CryptoQuant contributor Axel Adler noted a 3.7 times reduction in selling pressure during this period.

Currently, Bitcoin's price is approximately 8% lower than the average price paid by long-term holders, which stands at $64,490 according to data from ChainExposed. Despite this, there is a belief among traders that the price could decline further, potentially forcing long-term holders to maintain their positions even longer in anticipation of better profit-taking opportunities.

Pseudonymous crypto trader Rekt Capital cautioned that Bitcoin might "retrace deep enough to convince you that the Bull Market is over." Traders are closely watching the $50,000 level as a crucial support, with a break below potentially pushing Bitcoin into uncertain territory. This comes after a June report from Glassnode revealed that nearly 75% of all circulating Bitcoin has remained unmoved for at least six months.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.