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Data Shows Long-term BTC Holders Have Become Less Active in Market

Published 05/13/2023, 06:04 AM
Updated 05/13/2023, 06:30 AM
© Mundo Crypto PR Data Shows Long-term BTC Holders Have Become Less Active in Market
BTC/USD
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  • BTC hits a 10-month low in the number of spent outputs with a 1 to 2yrs lifespan.
  • The metric suggests that long-term holders are selling or transferring their coins.
  • Bitcoin is down by over 9% in the last seven days.

According to recent data from Glassnode, a well-known market tracker, the most popular crypto, Bitcoin (BTC), has hit a 10-month low in terms of the number of Bitcoin outputs that have been spent after being dormant for one to two years.

The metric, known as “Number of Spent Outputs with Lifespan 1y-2y (7d Moving Average (MA)),” measures the number of Bitcoin outputs that have been spent within the past seven days after being dormant for at least one year and two months.

According to Glassnode data, the metric reached a low of 164.214 on May 13, 2023, the lowest level since July 13, 2022. Notably, a decline in this metric can be interpreted as a sign that long-term holders are becoming less active in the market or a shift in trading patterns.

Also, it suggests that long-term holders are selling or transferring their coins, indicating a lack of confidence in Bitcoin’s long-term growth prospects among some investors. Additionally, it can be interpreted to mean some investors are choosing to hold their BTC for more extended periods rather than engage in short-term trading.

According to data from the popular market tracking site, CoinMarketCap, Bitcoin is down by over 9% in the last seven days, putting its current price around $26,800. Crypto traders bought and sold only $16 billion worth of BTC in the last 24 hours, a 16% decrease from what was obtainable in the past day.

Last month, Coin Edition reported that the percentage of unmoved Bitcoins reached an all-time high of 53% over the previous two years. The figure implies that at least one of every two BTC in circulation has not been traded since 2021.

The post Data Shows Long-term BTC Holders Have Become Less Active in Market appeared first on Coin Edition.

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