Long-Term Bitcoin Holder Purchases Reach $10 Billion as Price Dips Below $60,000

The total amount of Bitcoin held by long-term holders has surpassed $10 billion, coinciding with a recent decline in its price, now below $60,000.

Long-Term Holders Maintain Their Positions

Analysts indicate that long-term Bitcoin holders have demonstrated resilience amid the ongoing price fluctuations. The milestone of exceeding $10 billion in realized capitalization reflects their propensity to hold rather than sell, even as prices retract from the notable highs observed in 2021.

According to a contributor from CryptoQuant, “For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion.”

Understanding the Realized Capitalization

The realized capitalization is calculated based on the prices at which individual Bitcoins were last sold. This metric is often contrasted with market capitalization to gauge market sentiment. As explained by a crypto analytics firm, long-term holders are classified as those maintaining their Bitcoin holdings for more than 155 days.

• Past 155 days significantly reduces the odds of selling
• Long-term holders are less affected by brief market downturns

Since Bitcoin has been trading below $69,000 since July 30, the selling pressure from long-term holders has reportedly decreased by 3.7 times.

As of now, Bitcoin trades at $59,404, reflecting a 5.47% decline over the last day, with only a slight change over the week (0.11%) after briefly reaching $64,791.

The current price sits roughly 8% lower than the average price long-term holders paid, which is estimated at $64,490.

Market Sentiment on Potential Price Downturns

Market analysts suggest that traders anticipate further declines, potentially leading long-term holders to adopt an even more patient approach, fostering a wait-and-see attitude for more favorable price points.

Comments from the crypto trader Rekt Capital indicate that, “Bitcoin will retrace deep enough to convince you that the Bull Market is over.”

Many in the trading community perceive $50,000 as a vital support level; breaking through this could plunge Bitcoin into a period of uncertainty.

A recent report revealed that approximately 75% of all circulating Bitcoin hasn’t moved in over six months, showcasing a significant link to the long-term holder mentality.

This content is intended solely for informational purposes and should not be considered as investment advice. It is crucial for readers to conduct independent research before making financial decisions.