2The crypto market has showcased an impressive run surpassing traditional in terms of growth as well as resilience. Bitcoin’s price trajectory, for one, offered a compelling glimpse into its robust health. Over the past year, the flagship crypto has [posted over 65% gains.
Despite this, the long-term Bitcoin holders (LTHs) are yet to capitulate.
Long-Term Bitcoin Holders Stand Firm
According to the latest report from Bitfinex Alpha, the diminishing Coin Days Destroyed (CDD) metric offers a unique perspective on the current market conditions. It indicates that, despite the significant excitement surrounding this asset, long-term holders (LTHs) have not yielded to market forces.
Coin Days Destroyed (CDD) essentially serves as a metric that gauges the level of economic activity within the Bitcoin network. It aims to offer a more intricate perspective compared to merely examining transaction volume in isolation.
Such a trend is indicative of investors’ belief in the value proposition and future potential of Bitcoin, the report explained. Meaning – that even the ongoing rally might not be sufficient to entice the most steadfast supporters to part with their holdings.
“Such conviction is indicative of the underlying strength and resilience of the Bitcoin market.”
Low Sell-Side Liquidity
Bitfinex Alpha also pointed out that the current market is seeing low sell-side liquidity which is supported by the fact that large Bitcoin holders are refraining from selling. This indicates that they may believe there’s more room for the price to rise, or they are comfortable with holding their positions for an extended period.
It was found that wallets containing 1,000-10,000 BTC are currently showing reduced activity, as evidenced by the declining Spent Output Value Bands (SOVB) metric. This suggests a possible stabilization or even a bullish sentiment.
On the other hand, entities holding a smaller amount of Bitcoin in the 10-100 BTC range are experiencing noticeable upticks in the SOVB metric. This suggests that it’s probably the smaller holders who are currently contributing to the selling pressure.
Nevertheless, in recent weeks, this persistent selling pressure has demonstrated a relatively limited impact. Such behavior from these groups of holders typically aligns with the initial stages of bullish markets.