Bitcoin’s Prolonged Asset Retention Surges as Volatility Takes a Dip
Long-term holders of Bitcoin have reached a record holding of 14.599 million BTC, as per data from Glassnode, a blockchain analytics firm.
Over the course of the past week, the cumulative balance within these long-term wallets has witnessed a significant increase. These holders are essentially addresses that have diligently retained their Bitcoin for a minimum of 155 days, a practice often referred to in the Bitcoin community as “HODLing.” Impressively, this accumulation represents a substantial 75% of Bitcoin’s overall circulating supply, underscoring a discernible shift towards prolonged asset retention among investors.
In addition to this noteworthy development, the realized volatility of Bitcoin has now descended to levels rarely seen before. This trend aligns with periods of reduced market activity and is reminiscent of the phases of re-accumulation that have historically followed bear markets. This observation comes from Checkmate, an on-chain analyst at Glassnode. Realized volatility pertains to the degree of price fluctuations an asset experiences over a specific time frame, often calculated based on the variance between successive closing prices.
Despite recent fluctuations, Bitcoin has sustained a resilient performance since the onset of the year. This enduring growth has led to outperformance compared to major stock indices, such as the Nasdaq Composite, S&P 500, and Dow Jones. As Bitcoin continues to navigate its intricate market landscape, this resilience serves as a testament to its position as a compelling and dynamic asset class.
Clever Robot News Desk 8th August 2023
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