Long-Term Bitcoin Holders Refuse To Sell BTC Even Though The Price Is Rising, Here's Why!

Bitcoin owners are still saving BTC and don't want to sell their assets yet. (Photo; Doc. Pexels)

JAKARTA In recent weeks, the price of Bitcoin (BTC) has increased significantly after the news of the Bitcoin ETF submission. This condition triggered the recovery of BTC prices and raised investor optimism on the crypto market.

Although the price of Bitcoin is slowly rising, holders or long-term crypto asset holders do not want to sell their digital assets at the start of this bullish market. BTC holders appear to still keep their assets safe.

According to a recent report from Bitfinex Alpha, the declining Coin Days Destroyed (CDD) metric provides a unique overview of current market conditions. This metric shows that, despite significant enthusiasm for these assets, long-term holders or Long Term Holders (LTH) are not tempted by market pressure.

Coin Days Destroyed (CDD) is basically a metric that measures the level of economic activity in Bitcoin networks. This metric aims to provide a more in-depth perspective compared to just looking at separate transaction volumes.

Trends like this show investor confidence in the value and potential of Bitcoin's future, the report explains. Holders don't seem to be tempted to sell their assets even though the price of BTC has seen a significant increase lately. That means, their confidence level in Bitcoin is getting higher given its potential as a future asset.

"This kind of belief shows the fundamental strength and resilience of the Bitcoin market," wrote a statement in the Bitfinex Alpha report.

Low Selling Pressure

In addition, Bitfinex Alpha also shows that markets are currently experiencing low selling liquidity supported by the fact that large Bitcoin holders refrain from selling their assets.

This condition shows their confidence in the next increase in Bitcoin prices. On the other hand, it is possible that Bitcoin holders also feel comfortable owning their assets that are experiencing price growth so they choose to keep them for a long time.

The report also reveals that wallets containing 1,000 to 10,000 BTC are currently showing a decline in activity, as indicated by the Spent Output Value Bands (SOVB) metric. This factor suggests possible stabilization or even bullish sentiment for BTC.

On the other hand, entities that have a smaller Bitcoin amount in the 10-100 BTC range experienced a marked spike in SOVB metrics. Even so, the increasingly reduced selling pressure of BTC shows investor confidence in the start of the bull market.