Bitcoin Accumulation Phase Kicks Off With Newbie Holder Evolution

Olivia Brooke
March 3, 2022
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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Bitcoin market fundamentals point to an increase in holding sentiments. The market is effectively in an early stage accumulation stage according to data shared by Ki Young Ju, the CEO of CryptoQuant.

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New Bitcoin investors are evolving to LTHs

As Bitcoin On-chain activity continues in a bullish trajectory, new data shared by the CEO indicates that more and more Bitcoin investors were staying for the long term. Ju pointed to data from Realized Cap – UTXO Age Bands that showed that the market cap of Bitcoins that were bought six months ago was has now increased to 52% of the metric.

This indicates that this class of investors was tending to become Long Term Holders (LTHs). The CEO judges that the price of Bitcoin is unlikely to reach its previous low of around $28,000 reached last. To him, these newly maturing LTHs are likely to sustain the market until another wave of newbies joins the market in the next cycle.

The Realized Cap – UTXO Age Band is a metric that shows the distribution of realized cap of specific coins that are a specific age CryptoQuant website explains. The current trend of the metric indicates that more coins are being held in the long term and more values are being stored according to Age Band.

In contrast to Ju’s analysis, some analysts have warned that the Bitcoin market may likely see another drop to around $20,000. Gareth Soloway, the chief market analyst at InTheMoneyStocks, said that Bitcoin was still in a bear market in his opinion.

 We are inside of a bigger bear cycle in my opinion. Yes, I do believe eventually we will see another leg down to $20,000, Soloway told Kitco News.

However, even Solaway remains long-term bullish for Bitcoin. He only expects the bearish patterns to last influence the market for the mid-term.

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Whales also accumulating as Bitcoin trades sideways

The price has seen a slight drawdown from its recent rapid increase. Bitcoin is currently trading at around $43,500, down -0.95% in the last 24 hours.

However, the intra-day price of Bitcoin reached a one-week high price of $44,950 per data from CryptoRank. Santiment reports that amidst the price swings, Bitcoin whales have also been accumulating.

Santiment noted that in the last three days, there have been 13,400 transactions on the Bitcoin network that exceed $1 million in value.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.