Cryptocurrency analysis firm Glassnode says selling pressure on Bitcoin has eased dramatically compared to two months ago, with long-term investors holding onto BTC for longer periods of time.
Bitcoin’s “Value Days Destroyed (VDD) multiple” has undergone an “epic cooldown” over the past few weeks, pushing the top cryptocurrency into accumulation mode, according to Glassnode Principal Analyst James Check. It is said that it was returned.
On-chain metrics focus on coins that have not moved for long periods of time and compare short-term Bitcoin spending behavior to annual averages. This ratio increases when long-term holders sell relatively high and decreases when investors return to HODLing.
“This essentially means that old coins are no longer moving on the chain, leaving room for new demand bids to be hit by supply shortages,” Cech wrote on Twitter Monday. “Long-term holders need higher prices to motivate them to sell.”
On-chain analysts believe that the large corrections in Bitcoin prices during the bull market are caused by long-term holders looking to cash out when the price of Bitcoin is significantly above the average price at the time of their purchase. It has said.
Total supply for long-term holders typically increases over time, but historically it has declined sharply during Bitcoin's biggest bull markets, such as in early 2021 and early 2024.
According to Glassnode data, extreme values of the VDD multiple (above 2.9), including the 2017 peak during the network's third halving, identify local and absolute tops in the Bitcoin bull market. has been proven to be effective. In March, this ratio once again entered extreme territory above 4.0, but has now fallen to below 1.4.
A similar cooldown can be observed in the ratio of spending by long-term holders to Bitcoin's total supply.
“It decreased from about 5% in March to 2% in April, indicating that long-term holders stopped spending in April,” said Julio Moreno, head of research at CryptoQuant. Told. Decryption.
Late last week, CryptoQuant CEO Ki Young Ju said: claimed After the price of Bitcoin dropped below $57,000 in early May, active Bitcoin whales reportedly absorbed 47,000 BTC in 24 hours. Cech said at the time that the price drop looked like a standard bull market correction and argued that it was an unexpected event. It's a good time to buy dip.
Similarly, the Bitcoin ETF recorded $379 million in inflows on Friday, breaking a seven-day streak of outflows and marking the best day for the early-stage investment product in recent weeks.
Edited by Ryan Ozawa.
