Bitcoin

Billion

Time

<p>The realized capitalization of Bitcoin long-term holders (LTH) surpassed $10 billion this week for the first time ever. This highlighted the growing confidence among investors who hold the asset for extended periods, typically more than 155 days.</p>
<p>The LTH metric is particularly crucial because it reflects the conviction of these holders in Bitcoin’s long-term potential, as they are less likely to sell during short-term market fluctuations.</p>
<h2 id="10-billion-milestone">$10 Billion Milestone</h2>
<p>The latest surge in realized capitalization essentially signified a broader trend of increasing maturity in the Bitcoin market, where more capital is being held by those who believe in the asset’s enduring value, according to CryptoQuant contributor Amr Taha’s <a href="https://cryptoquant.com/insights/quicktake/66ce0568a409da60dc779f4b-For-the-first-time-ever-the-realized-capitalization-of-long-term-holders-has-exc" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">analysis</a>.</p>
<p>Another analyst, Alex Adler, weighed on the significant reduction in selling pressure from LTH of Bitcoin and&nbsp;<a href="https://x.com/AxelAdlerJr/status/1828324359557034120" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">noted</a> that it has decreased 3.7 times since the asset started trading below the price level of $69,000. This decline indicates that a significant portion of these holders are less inclined to sell their Bitcoin at current levels, demonstrating increased confidence in the asset’s trajectory.</p>
<p>It’s important to remember that a ratio below 1 suggests that sales are occurring at a loss, so this decrease in selling pressure implies that fewer long-term holders are willing to part with their Bitcoin at a loss.</p>
<h2 id="volatility-ahead">Volatility Ahead?</h2>
<p>Both on-chain data and the perpetual futures market are showing signs of stabilization, with profit and loss-taking activities dwindling and funding rates returning to neutrality across digital assets.</p>
<p>As per Glassnode’s <a href="https://insights.glassnode.com/the-week-onchain-week-35-2024/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">observation</a>, this pattern highlighted a significant decrease in speculative actions among market investors, spanning various asset classes. Meanwhile, the market has also remained in a structural downtrend for over five months, indicating a period of consolidation. Historically, these calm phases are usually brief, often leading to a rise in volatility.</p>
<blockquote>
 <p>“Market speculation remains relatively subdued for Bitcoin, with investors locking in only marginal profit and losses, and a reset across perpetual swap markets. Historically, periods of quiet and calm market structure are short-lived, and often precede an expectation for heightened volatility.”</p>
</blockquote>
<p>The post <a href="https://cryptopotato.com/bitcoin-long-term-holders-realized-capitalization-surpasses-10-billion-for-the-first-time/" rel="noopener noreferrer nofollow">Bitcoin Long-Term Holders Realized Capitalization Surpasses $10 Billion for the First Time</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Bitcoin Long-Term Holders Realized Capitalization Surpasses $10 Billion for the First Time

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