U.Today – As the cryptocurrency market faces volatility, an intriguing fact has emerged about the top holders.
According to CryptoQuant, long-term Bitcoin holders have increased their supply by a staggering 262,000 BTC over the past 30 days. This surge in accumulation has brought their total holdings to an impressive 14.82 million Bitcoin, representing 75% of the total Bitcoin supply.
Long-term holders (LTH) refer to the category of Bitcoin holders who have held onto their Bitcoins for extended periods without selling them during market swings. Their accumulation of 262,000 BTC in just one month highlights long-term confidence amid short-term market fluctuations.
This recent accumulation by long-term holders represents a positive backdrop to the current profit-taking in the cryptocurrency markets.
Bitcoin has suffered its steepest drop since the sell-off that rocked global markets in early August, part of a broader cryptocurrency market rout. Bitcoin’s drop comes despite a flurry of inflows into U.S. exchange-traded funds that back the original cryptocurrency. Among the market challenges are concerns that the U.S. government may be selling seized tokens.
Bitcoin price falls
Bitcoin fell more than 6% in yesterday’s trading session, the worst drop since the August 5 crash, before recovering some of its losses to trade at $60,162 at press time, still down 5% on the day.
Bitcoin has fallen nearly 10.8% over the past two days, from highs of $65,062 to lows of $58,025, as short-term holders established a resistance level at its breakeven price.
At the beginning of last month, the price of Bitcoin fell dramatically. According to CryptoQuant, this resulted in a 17% loss for short-term holders as the price returned to the average cost basis, allowing them to sell at breakeven, resulting in resistance.
The recent drop occurred as traders speculated on rising prices, resulting in a fragile environment. Open interest increased by 31% from $13.5 billion to $17.9 billion since August 5, while funding rates remained positive, indicating a premium for perpetual contracts.
This article was originally published on U.Today
