Tag: Hodling

Bitcoin Crosses $20K Mark, as Whales Continue to Accumulate Tokens

by Blockchain News

After slipping to lows of $18,000, Bitcoin (BTC) has gained some momentum and crossed the psychological price of $20,000.

The leading cryptocurrency was up by 7.77% in the last seven days to hit $20,154 during intraday trading, according to CoinMarketCap.

The upward momentum is experienced amid Bitcoin whales on a spending spree based on heightened accumulation. Market insight provider Santiment explained:

“Bitcoin whales are showing signs of sustained accumulation, which has been a rarity in 2022. Since September 27th, addresses holding 100 to 10k BTC have collectively added back 46,173 BTC back to their wallets as large USDT holdings have dropped.”

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Source: Santiment

Therefore, whales on the Bitcoin network are showing a sustained hodling trend, which can also be depicted by the fact that more coins have been leaving crypto exchanges.

Santiment added:

“Bitcoin continues to see its supply moving away from exchanges as traders show further signs of being content with their current holdings. With less than 9% of BTC on exchanges for the first time since 2018, it is a good bode of confidence for bulls.”

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Source: Santiment

Bitcoin exiting exchanges usually reflect a hodling culture because coins are transferred to digital wallets or cold storage for the future other than speculation. Therefore, it’s a bullish signal because it slashes selling pressure.

Bitcoin hodlers have not shown signs of relenting in their quest to have more coins because more than 42 million addresses hold BTC despite the bear market. This is 4.5 million more than 2021; data analytic firm IntoTheBlock pointed out. 

The bullish momentum being experienced in the BTC market is coming at a time when the UNCTAD has cautioned the federal reserve not to throw caution to the wind when tightening fiscal and monetary policies because this could prompt a global recession. 

The Fed has been at the forefront of increasing interest rates, which have been detrimental to the crypto market as bears continue to bite. 

Therefore, if the Fed heeds to this call, a bullish trend might be triggered in the crypto market because interest rate hikes have been the primary stumbling blocks. 

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Bitcoin Hodlers are Unwilling to Spend at Lower Prices as Most Coins Remain Untouched

by Blockchain News

Despite the bearish momentum experienced in the Bitcoin (BTC) market, long-term hodlers remain steadfast because they are not selling.

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Market insight provider Glassnode explained:

“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 Bitcoin  supply is dormant, and hodlers are increasingly unwilling to spend at lower prices.”

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Source:Glassnode

 

This correlates with the fact that Bitcoin’s balance on exchanges recently reached a 4-year low. BTC leaving crypto exchanges symbolizes a hodling culture, given that coins are often transferred to cold storage and digital wallets for future purposes other than speculation. 

 

Therefore, hodling continues to be a favored strategy in the Bitcoin market.

 

On the other hand, signs of a Bitcoin bottom have not yet popped up, despite the leading cryptocurrency continuously consolidating around the psychological price of $20K.

 

Market analyst under the pseudonym Tajo Crypto pointed out:

“No one knows what price Bitcoin will bottom, but after Bitcoin hit $17K on June 18th, Bitcoin hasn’t retested that level. There’s no guarantee that $17K is the bottom, but Bitcoin has dropped massively and could bottom at any point and start reversing. Many will be taken unawares.”

Glassnode recently shared similar sentiments that more time was needed for a resilient bottom to be formed. The market insight provider stated:

“For a bear market to reach an ultimate floor, the share of coins held at a loss should transfer primarily to those who are the least sensitive to price, and with the highest conviction.”

Glassnode believed that most BTC held at a loss had to be transferred to long-term holders for an ultimate floor to be formed.

 

Bitcoin oscillated around $21,395 during intraday trading, according to CoinMarketCap.

 

Meanwhile, the Bitcoin Lightning Network continues scaling heights after hitting a new all-time high (ATH) of 4,208 BTC. 

 

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Source:Glassnode

 

The growth witnessed on the Lightning Network is happening amid Bitcoin’s price being on shaky grounds, suggesting that the development for adoption continues to take shape. 

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Bitcoin Miners’ Accumulation Has Been Consistent for Nearly a Year

by Blockchain News

Bitcoin (BTC) miners have adopted a strategy of consistently accumulating more coins for almost one year, according to market insight provider Glassnode.

Bitcoin miners’ accumulation has been on an uptrend since April 2021, with their cumulative balance sitting slightly below 1,825K BTC. 

 

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Source:Glassnode

 

This trend change among Bitcoin miners started in 2020 after they transformed into buyers and hodlers. This behavioural change might have been triggered by unprecedented factors like Bitcoin mining being unwelcome on Chinese soil. 

 

For instance, more than 90% of China’s crypto mining capacity was lost after authorities disconnected BTC mining sites in Sichuan in June. 

 

Hodling and accumulation have emerged as favoured strategies in the crypto space. Data analytic firm IntoTheBlock recently noted:

“As BTC soars to $42,000, more than 15,000 BTC in outflows from exchanges were spotted on March 21st, the largest since Jan 29th. The last time BTC experienced a large outflow, it was followed by a significant rise in price.”

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Source:IntoTheBlock

 

Cryptocurrencies leaving exchanges signifies a hodling culture because coins are transferred to digital wallets and cold storage for future purposes rather than speculation. Furthermore, it illustrates a bullish sign based on reduced selling pressure.

 

With Bitcoin’s price being below the 200-day moving average(MA) longer than the big correction witnessed in 2021, it remains to be seen how the leading cryptocurrency plays out in the short term.

 

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Source:TradingView

 

The notable correction in 2021 was prompted by the massive exit of crypto miners from China based on an intensified crackdown. As a result, Bitcoin nosedived from highs of $64,800 to lows of $30,000 in May 2021. 

 

On the other hand, the 200-day MA depicts a market trend because it shows an average of approximately 40 weeks of trading.

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Will Ethereum’s Records Biggest Crypto Exchange Outflow in 2022 Propel More Upward Momentum?

by Blockchain News

Ethereum witnessed the largest crypto exchange outflow this year, given that coins exited in droves to the tune of more than 180,000 ETH.

Market insight provider IntoTheBlock explained:

“Largest Outflows in 2022 – over 180k ETH was withdrawn from centralized exchanges within a single day. The last time such a magnitude of ETH left exchanges was in Oct 2021, preceding a 15% price increase within ten days.”

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Source: IntoTheBlock

Cryptocurrencies leaving exchanges signals bullish because it illustrates a hodling culture, given that coins are transferred to cold storage and digital wallets, reducing selling pressure.

Therefore, the massive outflows suggest that Ethereum is experiencing scarcity and this coupled with burnt Ether are bullish signs. 

Since the London Hardfork or EIP-1559 upgrade went live in August 2021, the supply of Ethereum continues to be depleted based on the burning mechanism incorporated.

The non-fungible token (NFT) market has been making burnt Ether go through the roof. IntoTheBlock stated:

“NFT trading activity has been the largest burner of Ether since the introduction of EIP 1559 OpenSea activity alone has led to 230k ETH out of circulation. As NFT volumes peaked in January, Ether’s net issuance dropped to historic lows of nearly -2%.”

Ethereum is one of the sought-after networks in the NFT sector, which continues to take the world by storm.

ETH has been experiencing an upward momentum since the second-largest cryptocurrency surged past the psychological price of $2,500 observed on March 15.

With IntoTheBlock acknowledging that a 15% surge in Ethereum price was witnessed the last time massive crypto outflows were observed, it remains to be seen how things turn out this time around. 

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Ethereum Records Biggest Crypto Exchange Outflow in 2022, Will this Propel More Upward Momentum?

by Blockchain News

Ethereum witnessed the largest crypto exchange outflow this year, given that coins exited in droves to the tune of more than 180,000 ETH.

Market insight provider IntoTheBlock explained:

“Largest Outflows in 2022 – over 180k ETH was withdrawn from centralized exchanges within a single day. The last time such a magnitude of ETH left exchanges was in Oct 2021, preceding a 15% price increase within ten days.”

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Source: IntoTheBlock

Cryptocurrencies leaving exchanges signals bullish because it illustrates a hodling culture, given that coins are transferred to cold storage and digital wallets, reducing selling pressure.

Therefore, the massive outflows suggest that Ethereum is experiencing scarcity and this coupled with burnt Ether are bullish signs. 

Since the London Hardfork or EIP-1559 upgrade went live in August 2021, the supply of Ethereum continues to be depleted based on the burning mechanism incorporated.

The non-fungible token (NFT) market has been making burnt Ether go through the roof. IntoTheBlock stated:

“NFT trading activity has been the largest burner of Ether since the introduction of EIP 1559 OpenSea activity alone has led to 230k ETH out of circulation. As NFT volumes peaked in January, Ether’s net issuance dropped to historic lows of nearly -2%.”

Ethereum is one of the sought-after networks in the NFT sector, which continues to take the world by storm.

ETH has been experiencing an upward momentum since the second-largest cryptocurrency surged past the psychological price of $2,500 observed on March 15.

With IntoTheBlock acknowledging that a 15% surge in Ethereum price was witnessed the last time massive crypto outflows were observed, it remains to be seen how things turn out this time around. 

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Ethereum Needs to Hold $2,800 for Sustainable Bullish Momentum

by Blockchain News

With Ethereum being treated like a stone’s throw away from the psychological price of $3,000, its upward momentum continues to gain steam.

The second-largest cryptocurrency based on market capitalization was up by 22.21% in the last seven days to hit $2,911 during intraday trading.

Nevertheless, Ethereum needs to continue holding the $2,800 level for a sustainable upward trend. Market analyst Ali Martinez explained:

“On-chain data from IntoTheBlock shows that as long as ETH remains trading above $2,800, ETH has a good chance of recovering and advancing further because there is no major supply barrier ahead.”

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Source: IntoTheBlock

On the other hand, a bullish sign continues to pop up, given that Ethereum has been leaving crypto exchanges in droves. Data analytic firm IntoTheBlock acknowledged:

“ETH has seen 7 days of consecutive outflows from exchanges. As the price increases, the supply available to buy from exchanges has been decreasing non-stop in 2021. Over 327,000 ETH left exchanges since Feb 22nd.”

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Source: IntoTheBlock

Whenever cryptocurrencies leave exchanges, a holding culture is demonstrated because they are usually transferred to cold storage and digital wallets for future purposes. Therefore, this is a bullish sign because selling pressure gets tamed.

As Ethereum continues trading above the psychological price of $2,500, whether the $3,000 level will next remain to be seen. 

Meanwhile, the much-awaited Ethereum’s proof of stake (PoS) consensus mechanism is deemed a game-changer that will prompt the adoption of energy-efficient technology. A recent review by the Massachusetts Institute of Technology (MIT) ranked Ethereum’s PoS among the top 10 technological breakthroughs of 2022.

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Bitcoin Hodlers’ Accumulation Continues, Ruble-Denominated BTC Volumes Hitting 9-Month High

by Blockchain News

Bitcoin (BTC) hodlers remain unfazed despite the leading cryptocurrency recently hitting lows of $34,000 as they continue accumulating more coins.

Data analytic firm IntoTheBlock explained:

“BTC hodlers continue to accumulate. The balance held by hodlers – addresses holding >1 year, increased by 4.13% over the past 30 days. 11.78m BTC belongs to these addresses.”

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Source: IntoTheBlock

Market analyst Dylan LeClair also acknowledged that hodlers were not relenting on their quest to have more coins. He stated:

“Only 15.5% of the Bitcoin circulating supply has moved in 2022 despite rising levels of macroeconomic uncertainty. Hodlers are completely unfazed. Quite astonishing when you think about it.”

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Source: Glassnode

Furthermore, BTC accumulation addresses have been going parabolic.

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Source: Glassnode

Meanwhile, Ruble-denominated Bitcoin volumes are skyrocketing, given that they reached a 9-month high.

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Source: Kaiko

Bitcoin’s ruble volume topped $16 million on Thursday, its highest level in 2022. On Monday, the total was about $8.5 million.

The Russian invasion of Ukraine has sparked interest in cryptocurrencies. Both Ukrainians and Russians are running to crypto to shield their money, with the Russian ruble has already lost a third of its value this year.  

On the other hand, Bitcoin is forming a bullish engulfing candle weekly.

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Source: TradingView

A bullish engulfing candle appears at the bottom of a downtrend and indicates a surge in buying pressure. The bullish engulfing pattern often triggers a reversal in trend as more buyers enter the market to drive prices up further.

Bitcoin was up 16.84% in the last seven days to hit $43,387 during intraday trading, according to CoinMarketCap.

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82% Ethereum Holders Still in Profitability Despite Price Slipping Below $4,000

by Blockchain News

Despite dropping below the psychological price of $4,000, 82% of Ethereum (ETH) holders continue being in profit, according to data by market insight provider IntoTheBlock. 

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ETH was down by 5.04% in the last seven days to hit $3,712 during intraday trading, according to CoinMarketCap.

This year, the second-largest cryptocurrency has made significant strides thanks to various use cases on its network. For instance, it scaled the heights and soared to historic highs of $4,850 last month.

Furthermore, Ethereum has yielded an annual return more than five times that of Bitcoin. ETH has a yearly return of 406% so far compared to Bitcoin’s 72.1%, according to CoinGecko. 

Raoul Pal, the CEO and founder of Real Vision, opined that Ethereum has outperformed Bitcoin based on the burning mechanism and staking happening on its network. He explained:

“Burning + Staking + maintained volume is why ETH has outperformed BTC by 4x in 2021. But with no net real new capital flowing into the space, attention moves to other chains which also have PoS but earlier network adoption, taking volumes away from both BTC and ETH.”

The burning mechanism was introduced by the London Hard Fork or EIP 1559 upgrade in August, which has aided in reducing Ethereum’s annual inflation rate to 1.4%. Ethereum is burnt every time it is used in transactions, making scarcity inevitable. 

 

On the other hand, the Ethereum 2.0 deposit contract launched in December 2020 made staking a possibility on the ETH ecosystem, given that it seeks to transit the current proof of work (PoW) consensus mechanism to a proof of stake (PoS) framework.

 

It is touted as a game-changer because Ethereum 2.0 full upgrade is expected to trigger a 1% annual deflation rate.  

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Bitcoin Funding Turns Negative amid 70% of BTC Circulating Supply Being Hodled

by Blockchain News

The weekend was characterized by a sharp decrease in the Bitcoin price after suffering a 20% drop prompting lows of $42K.

BTC funding flipped negative following long liquidations, according to on-chain analyst Dylan LeClair. 

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The change in funding rate was partly triggered by open interest to the tune of $5.1 billion was closing. Market insight provider Dilution-proof confirmed: 

“$5.1 billion (23.4%) open interest was closed, sending the funding rate from moderately positive to firmly negative. The percentage of Bitcoin backed margin actually increased, which is unusual during such long liquidations.”

The massive liquidations in the Bitcoin market made December 4 the second-largest daily shed off in 2021 after a 50% price drop was witnessed on May 19. 

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At the time, Chinese authorities had started an intensified crackdown on crypto mining, which caught miners unawares. As a result, the price nosedived to lows of $30,000 from highs of $60K.

The situation was dire to the extent that Bitcoin price dropped below the 200-day moving average (MA) for the first time since March 2020. This is a key technical indicator that determines the general market trend because it shows the average of approximately 40 weeks of trading. 

Nevertheless, the Bitcoin market has experienced sharp corrections in a bull run in the past. For instance, in the 2017 bull run, Bitcoin witnessed approximately six sharp corrections, with the highest hitting 38%. 

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Therefore, it seems that significant pullbacks are the norm in Bitcoin’s bull markets.

On the other hand, despite the notable correction witnessed over the weekend, the amount of BTC being hodled is high. 

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“70% of Bitcoin’s circulating supply is being hodled,” according to Glassnode co-founders Yann & Jan. 

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Bitcoin Eyes Settling $45 Trillion in 2021, Twice the Value of all its Previous Years Combined

by Blockchain News

By the end of the year, Bitcoin (BTC) is set to make the highest transfer volume of $45 trillion, a scenario not seen in its twelve-year journey.

Yassine Elmandjra, an analyst at ARK Invest, confirmed:

“Bitcoin is on pace to settle twice as much value this year as all of its previous years combined. Bitcoin annual settlement volumes are now ~4 times that of Visa’s and ~6% of the Fedwire.”

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By settling a transfer volume of $45 trillion in 2021, Bitcoin will have doubled the value settled in its previous 11 years. This amount will also be four times of Visa transfers.

Therefore, it goes without saying that so far, 2021 has been a significant year for Bitcoin, irrespective of the hiccups witnessed. For instance, despite the leading cryptocurrency nosediving to lows of $28K in May as China intensified its crypto mining crackdown, BTC was able to defy the odds and scale to new highs of $69,000 earlier this month. 

Furthermore, institutional interest in Bitcoin has gone a notch higher in 2021, as evidenced by MicroStrategy’s accumulation of more than 121,000 BTC. 

Nearly 23% of BTC circulating supply has not moved for more than 5 years

According to crypto educational platform On-Chain College:

“The percentage of Bitcoin circulating supply that has not moved in at least 5 years continues to make All-Time Highs. Almost 23% of the circulating supply has been untouched for at least 5 years. More and more hodling from a macro perspective.”

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Hodling is a preferred strategy in the Bitcoin market because coins are kept away from crypto exchanges in cold storage and digital wallets for future purposes. Therefore, this creates a supply deficit because they cannot be readily liquidated and if demand rises, the price increases.  

On the other hand, based on the 30-day trend in crypto exchanges, BTC is leaving at a high rate. Furthermore, retail investors and short-term holders are selling to institutions and whales. 

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Bitcoin (BTC) $ 27,369.33 0.86%
Ethereum (ETH) $ 1,638.61 1.70%
Litecoin (LTC) $ 64.30 3.10%
Bitcoin Cash (BCH) $ 228.73 5.79%