A key Bitcoin statistic has hit an all-time high, suggesting the start of an accumulation phase.<\/p>\n
The so-called HODLwave of Bitcoin has hit a new all-time high. The metric indicates the amount of unmoved BTC on the blockchain in the past 12 months. It typically suggests that investors are increasingly accumulating the dominant cryptocurrency.<\/p>\n
Researchers at Cryptowatch, a crypto market data company owned by U.S. exchange Kraken, wrote:<\/p>\n
Bitcoin's 1-year HODL waveBTC unmoved on the blockchain over the last 365 dayshas hit a new all-time high of 63%. Bitcoin's HODL wave is up 1% since the start of July.<\/p>\n
HODLwave of Bitcoin shows how addresses with BTC unmoved for a year. <\/p>\n
The last time this many users held onto Bitcoin without transferring it to other addresses was in early-2019. At the time, BTC rallied from around $4,000 to $14,000, recording a 250% uptrend.<\/p>\n
Various On-Chain Metrics Hint At Improving Bitcoin Market Sentiment<\/p>\n
The HODLing activity of Bitcoin has continuously hit new highs since late last month.<\/p>\n
On June 30, Altana Digital Currency Funds chief investment officer Alistair Milne said the metric hit 62%. He predicted that it could hit 70% at its peak during the ongoing cycle.<\/p>\n
Milne said:<\/p>\n
HODL'ing for a year or more just made a new ATH of 62%. Similar levels of HODL last seen during a 3-month consolidation at around $400 before starting a two-year bull run. Guesstimate that this cycle will peak around 70%?<\/p>\n
Since then, within a month, the price of Bitcoin rallied from $9,187 to over $11,000. On July 27s peak, BTC rose to as high as $11,417 on spot exchanges, such as Bitstamp.<\/p>\n
The performance of Bitcoin against the U.S. dollar since HODLwave hit 63%.<\/p>\n
Apart from the HODLwave, other on-chain metrics and statistics suggest that the market sentiment around Bitcoin remains positive.<\/p>\n
Most recently, market data firm Glassnode said the number of Bitcoin addresses holding at least $1 million surged to 18,000.<\/p>\n
The statistic shows that new whalesinvestors holding a significant amount of Bitcoinhave increased in prominence over recent months.<\/p>\n
Historically, when new whales bought Bitcoin, it led to strong rallies.<\/p>\n
For instance, data from Glassnode shows the number of new whales increased in December 2017 and July 2019. In those two months, Bitcoin surpassed $20,000 and $14,000, respectively.<\/p>\n
The number of addresses with a Bitcoin balance of over $1 million.<\/p>\n
Other Data That Suggest More Volatility Is Likely Incoming<\/p>\n
On July 29, Grayscale said that the assets under management (AUM) of the company reached $5.1 billion.<\/p>\n
Accredited and institutional investors in the U.S. usually gain exposure to BTC through the Grayscale Bitcoin Trust.<\/p>\n
Grayscales record-high holdings indicate that the involvement of institutions in the cryptocurrency market is still high.<\/p>\n
The daily trading volumes of the spot, options, and futures markets are continuing to increase, showing heightened demand for crypto.<\/p>\n
Atop the exchange data, Ki Young-ju, the CEO of on-chain analysis firm CryptoQuant, said whales have begun sending Bitcoin and stablecoins to exchanges.<\/p>\n
He said:<\/p>\n
BTC whales are sending Bitcoins to exchanges. #Stablecoin whales are sending stablecoins to exchanges as well. This week will be a battle between Stablecoin and Bitcoin exchange inflows. These inflows indicate potential buy\/sell pressures.<\/p>\n
A confluence of optimistic on-chain statistics, an overall increase in trading activity, and the rising involvement of whales could further improve the sentiment around Bitcoin.<\/p>\n
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Originally posted here: <\/p>\n
Last Time This Bitcoin Statistic Hit A New High, BTC Surged 3.5xAnd Its Back - Forbes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A key Bitcoin statistic has hit an all-time high, suggesting the start of an accumulation phase. The so-called HODLwave of Bitcoin has hit a new all-time high. Continue reading