Bitcoin (BTC) HODLers Resurface: Long-Term Investors Reignite Holding Strategy, Report Reveals

• Bitcoin’s sell pressure has significantly reduced over the past two months, with long-term investors holding onto their BTC for longer periods, according to crypto analytics firm Glassnode.
• Bitcoin’s “Value Days Destroyed (VDD) Multiple” has seen a significant cooldown, indicating a return to accumulation mode.
• Large Bitcoin price corrections during a bull run are typically driven by long-term holders cashing out when the Bitcoin price rises substantially above their average purchase price.

Bitcoin’s sell pressure wanes as long-term investors hold, marking a shift back to accumulation mode, according to crypto analytics firm Glassnode.

Bitcoin’s Sell Pressure Decreases

Bitcoin’s sell pressure has significantly reduced compared to two months ago. More long-term investors are holding onto their BTC for longer periods, according to crypto analytics firm Glassnode. The firm’s lead analyst, James Check, noted that Bitcoin’s “Value Days Destroyed (VDD) Multiple” has seen an “epic cooldown” over the past few weeks, indicating a return to accumulation mode.

Understanding the Value Days Destroyed Multiple

The VDD Multiple is an on-chain metric that compares near-term Bitcoin spending behavior to its yearly average, with a focus on coins that haven’t moved in a long time. The ratio rises when long-term holder selling is relatively high and falls as investors pivot back to HODLing. Check explained that the current cooldown indicates that old coins have stopped moving on-chain, allowing breathing space for new demand bids to hit a lack of supply.

Impact of Long-Term Holders on Bitcoin Price Corrections

On-chain analysts have... Read the full article for FREE at COINOTAG!