Is Mt. Gox A Worry For Bitcoin? Crypto Analyst Weighs In

Bitcoin outflows from the Mt. Gox exchange have occurred in the past day, making some worry about potential bearish effects. Heres what an analyst thinks. Mt. Gox Has Made Several Bitcoin Transactions In The Last 24 Hours During the past day, several movements from wallets associated with the bankrupt cryptocurrency exchange Mt. Gox have been [...]

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Bitcoin Long-Term Holders Slow Down After 700,000 BTC Selloff, Reversal Sign?

On-chain data shows the Bitcoin long-term holder selling pressure has been running out recently after an extended selloff from the group. Bitcoin Long-Term Holders Have Sold Huge In Past 4 Months As analyst James Van Straten explained in a post on X, the long-term holders have massively reduced distribution during the last ten days. The “long-term holders” (LTHs) here refer to the Bitcoin investors carrying their coins since more than 155 days ago. The LTHs comprise one of the two main divisions of the BTC sector, with the other cohort known as the “short-term holders” (STHs). The STHs are naturally the investors who bought within the past 155 days. Related Reading: Bitcoin Has Next Major Demand Zone At $56,000: Brace For Impact? Statistically, the longer an investor holds onto their coins, the less likely they become to sell at any point. As such, the LTHs represent the more committed part of the BTC market. The STHs, on the other hand, are fickle-minded hands who may sell at the first sight of any FUD or profit-taking opportunity. As such, selling from the STHs is usually not that noteworthy. However, Selloffs from the LTHs can be something to watch for, as they rarely occur. One way to track the behavior of these Bitcoin cohorts is through the total amount of supply they carry in their respective combined wallets. The chart below shows the STH and LTH supply trend over the past year. How the supplies held by these two cohorts have changed during the past twelve months | Source: @jvs_btc on X As displayed in the above graph, the supply of Bitcoin LTHs increased through most of 2023. At the same time, the supply of STHs naturally decreased. Something to note here is that this increase in the LTH supply didn’t mean that these HODLers were buying then. Instead, some STHs bought 155 days ago and have finally held long enough to qualify for the cohort. Thus, there is a 155-day delay between accumulation and the increase registered in the LTH supply. When it comes to selling, though, no such time lag exists, as the LTHs who transfer coins on the blockchain immediately eject from the group and become part of the STHs. The chart shows that this trend of the supply of these diamond hands going up flipped this year, and the LTHs have been selling instead. In the past four months, these investors have distributed 700,000 BTC. Related Reading: Bitcoin Whales Showing Different Behavior From Past Cycles, But Why? This excludes the selloff from Grayscale Bitcoin Trust (GBTC), which has constantly been bleeding coins since the US SEC approved the spot exchange-traded funds (ETFs) in January. These coins had also matured enough to become part of the LTHs. Recently, as the price has gone through some bearish action, the LTH supply has flatlined, implying that the selling from these HODLers has finally stopped, at least for now. Given this new trend, it now remains to be seen how BTC’s value develops from here. BTC Price Following the latest drawdown in Bitcoin, its price has dropped towards the $63,200 level. Looks like the price of the asset has gone down recently | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, Glassnode.com, chart from TradingView.com

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Why Bitcoin Is Recovering: Institutional Buying After Panic Selloff

The price of Bitcoin has also been seen to recover in recent days due to changes in the market, especially through the Coinbase Premium index. This trading pair that shows the price difference between Bitcoin on Coinbase Pro and Binance is an indicator of institutional investors. In an X post on Tuesday, analytical platform Crypto […]

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Bitcoin Miner Selloff Poses “Negligible Impact”, Quant Argues

On-chain data shows the Bitcoin miners have been selling recently, but this quant has argued that this selloff shouldn’t have much impact on the market. Bitcoin Miner Reserve Has Registered A Decline Recently In a CryptoQuant Quicktake post, an analyst discussed the latest selling pressure that the miners have been putting on the market. The indicator of interest here is the “miner reserve,” which keeps track of the total amount of Bitcoin that the miners combined hold in their wallets right now. This metric can naturally provide information about the collective behavior of these chain validators. Generally, the miners withdraw their coins from their reserve when they want to sell, so a decline in the indicator can potentially have bearish consequences for the asset. Related Reading: These Crypto Asset Classes Could Be Future Market Drivers: Santiment A rise in the metric, on the other hand, may be bullish for the cryptocurrency’s price as it suggests the miners as a whole are in accumulation mode at the moment. Now, here is a chart that shows the trend in the Bitcoin miner reserve over the past year: The value of the metric seems to have been heading down in recent days | Source: CryptoQuant As displayed in the above graph, the Bitcoin miner reserve has been on its way down since October, implying that this cohort has withdrawn a net amount of BTC from their wallets during this period. This latest selloff from the miners has recently been a topic in the community, with many speculating about the possible bearish impact arising from it. The quant has a different opinion on the matter, however. “The sell-off of Bitcoin reserves by miners, as discussed on X and various portals, is unfounded,” explains the analyst. To back this claim, the quant has pointed out the exact numbers involved here. Before this selling started, the miner reserve had a value of around 1,84,997 BTC. Following the decline that the indicator has witnessed since then, the miners now hold about 1,833,222 BTC. This represents a decrease of 12,755 BTC, which, although substantial on its own, doesn’t seem too large in the grand scheme of things, especially considering the size of the miner reserve itself. “The minimal amount of bitcoin sold has negligible impact on the market,” notes the analyst. The trend in the miner inflows and outflows over the past couple of months | Source: CryptoQuant The above chart shows the data for the Bitcoin inflows and outflows being made by the miners. There have indeed been outflows taking place recently, which is why there has been talk of a selloff. Related Reading: Bitcoin Rally Still Has Some Legs Left, Santiment Explains Why At the same time, the inflow transaction volume has also been at significant levels, making up for these outflows. This is the reason for the relatively small net decrease in the total miner reserve. BTC Price Bitcoin had recovered beyond the $43,000 mark earlier, but the asset has seen a setback during the past day as it has slipped back towards $42,500. Looks like the price of the coin has retraced some of its recent recovery | Source: BTCUSD on TradingView Featured image from Shutterstock.com, charts from TradingView.com, CryptoQuant.com

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