Studies reveal long-term current Bitcoin trends similar to previous bear market trends

The leading blockchain analytics company Glassnode has recently posted on Twitter that reveals that the current Bitcoin holding trend is similar to past bear market holding trends. 

As outlined, the current levels are similar to that of 2012, 2015, and 2018 BTC holding levels. According to the shared Tweet, the company indicated that around 80% of the overall Bitcoin via U.S. dollar had not been touched for about three months.

Over 80% of the total USD denominated wealth invested in #Bitcoin has been HODLed for at least 3-months.

This signifies that the majority of the $BTC coin supply is dormant, and HODLers are increasingly unwilling to spend at lower prices.

Live Chart: https://t.co/lRtBe69Phz pic.twitter.com/NIQzwkXQDv

— glassnode (@glassnode) July 16, 2022

Bitcoin trends you should know

This demonstrates how traders are holding onto their Bitcoin during this downturn. As a result, the main BTC supply denomination is dormant. The information also confirms newly emerging claims that primarily short-term speculators are now trading BTC.

It’s important to note that the price of Bitcoin is currently sitting around the $21K to $22K zone. However, the value is down almost 70% from the all-time high of $69,044 Bitcoin reached in November 2021.

David Duong, the head of institutional research at Coinbase, published a paper last week titled “The Elusive Bottom.” The article provided examples of how on-chain data shows that long-term investors are unwilling to liquidate their Bitcoin holdings.

The author says that these apprehensive long-term investors own around 77 percent of the total amount of BTC in circulation. However, long-term investors controlled almost 80% by the beginning of 2022. Research indicates that the tiny discrepancy is a result of the present market downturn.

A different study by IntoTheBlock claimed that 45% of Bitcoin investors only experience an “on-paper loss.” This represents a rise from the asset’s low of $17,850 last month.

Glassnode experts disclosed that the Bitcoin community saw a significant drop in the number of new investors at the beginning of July.

The company also stated that since the end of last year, the number of functioning wallets has decreased. This suggests that long-term investors are not currently involved in any market activity.

As ThecoinRise reported, a study also reveals that 77% of family offices in the United States are either considering investing in crypto or have already done so.