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Glassnode: Bitcoin holding activity similar to previous market bottoms

According to blockchain analytics firm Glassnode, the majority of Bitcoin has been “held” for at least 3 months, a behavior that is eerily similar to previous Bitcoin market bottoms.

Glassnode noted in a July 16 tweet that more than 80% of the total dollar-denominated funds invested in Bitcoin have not moved for at least three months.

This, the company said, means that "a large portion of the bitcoin supply is dormant" and that holders are "increasingly reluctant to sell at lower prices."

As of this writing, Bitcoin is priced at $21,013, down nearly 70% from its November 2021 all-time high of $69,044. According to data from crypto intelligence firm IntoTheBlock, current prices leave about 45% of Bitcoin holders with a paper loss.

Similar levels of Bitcoin holdings were seen at the end of the bear markets in 2012, 2015, and 2018, according to Glassnode charts.

Last week, David Duong, head of institutional research at Coinbase, wrote in a July 12 report titled "The Elusive Bottom" that on-chain data suggested the recent sell-off in bitcoin was driven "almost entirely" by short-term speculation. carried out by. He added that long-term Bitcoin holders "did not sell when the market weakened."

“These holders hold 77% of the total supply, down slightly from 80% at the beginning of the year, but still quite high,” he explained, before adding:

“We view this as a positive sentiment indicator, as we believe these holders are less likely to sell bitcoin during volatile times.”

Earlier this month, analysts at Glassnode noted that the bitcoin market was almost completely cleared of "tourists," noting that activity on the network was at levels comparable to the worst of the bear market in 2018 and 2019.

Glassnode revealed that since November 2021, there has been a downward trend in the number of active addresses and entities, meaning that neither new nor existing investors are interacting with the network.

Additionally, the number of non-zero Bitcoin addresses has reached 42,530,652, a new all-time high, according to the firm.

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