Crypto Market Collapses, Long-Term Bitcoin Holders Remain Hodl BTC

JAKARTA - Although the price of Bitcoin has experienced dramatic fluctuations so far this year, long-term holders or commonly called Bitcoin hodlers will still keep BTC in their investment portfolios.

The latest report from Glassnode reveals that long-term investors, particularly those who have held Bitcoin for at least 155 days, continue to attract more than 50,000 BTC from the exchange every month. This data reflects the attitude of the hodlers and their reluctance to transact under current market conditions.

The report also notes that the cryptocurrency market is currently experiencing low liquidity and is similar to the bearish market conditions that occurred in 2014-15 and 2018-19. This condition has lasted for 535 days.

The transaction value and entry of new capital into the Bitcoin network are currently at their lowest level in years. Exchange activity also shows the apathy of investors, with an average exchange volume of around $1.5 billion (Rp23.5 trillion), down 75.5% from the highest level in May 2021.

Glassnode researchers revealed that the profit and loss volume generated from coins sent to exchange addresses is also at the lowest level seen since 2020.

The report also tries to identify altcoin or crypto speculation periods other than explosive Bitcoins and reveals that low liquidity and altcoin price hikes are more of a result of low liquidity than real risk-on atmospheres.

Bitcoin holders continue to keep their assets in anticipation of a forthcoming price spike. With a half-reward reduction of BTC in Bitcoin breaking coming in 196 days, it is estimated that there will be further pressure on Bitcoin supply.