Following the renewed optimism surrounding Bitcoin, the largest cryptocurrency asset, Axel Adler Jr, a research and data analyst at CryptoQuant, spotted a notable drop in investors’ willingness to sell their BTC holdings. This pattern shows growing confidence in the prospect of additional gains in the leading crypto asset as the broader market experiences a significant recovery.
Decreasing Investor Pressure to Sell Bitcoin
CryptoQuant analyst Axel Adler Jr highlighted the positive development in his latest sentiment research. His analysis underscores a change in outlook with holders consistently choosing to hold on to their BTC holdings rather than sell them despite recent market rallies.
According to the expert, Bitcoin has become a major investment vehicle in recent years, in addition to a medium of exchange, indicating the potential of the digital asset. This sentiment seems to be building confidence around the coin, as the number of BTC deposit addresses across all exchanges has decreased significantly, with the most recent on-chain data indicating a low of 25,000.
Adler noted that the drop in deposit addresses to 25,000 is a crucial indicator that could signal a shift in investors’ approach to storing their BTC. Particularly with the recent market recovery, this drop suggests that the majority of holders are looking to hold on to their holdings in anticipation of future price increases.
Looking at the trend from a behavioral science perspective, Adler argues that the recent pattern could indicate that investors in Bitcoin are gaining more and more confidence, which is caused by several factors such as increasing institutional investments in cryptocurrencies.
It is worth noting that the analyst sees this development as a bullish trend that could trigger significant future price increases for BTC, as the decrease in investors’ desire to sell the asset could result in less BTC being available for purchase. “This is undoubtedly a bullish signal for the market, as it indicates expectations of higher future values,” he added.
Veteran holders hold on to their BTC
Ki Jong Juthe Chief Executive Officer (CEO) and founder of CryptoQuant, has identified This sentiment is especially prevalent among experienced BTC holders, particularly those who have been holding for more than 3 years. As the crypto market transitions into a bullish phase, the CEO believes that those selling their Bitcoin are holders of less than 3 years, noting that experienced investors are willing to hold.
According to Ju, recent data shows that once BTC As the asset moved closer to its previous all-time high, those who held for 6 months to 2 years as bull market investors sold most of their holdings. Additionally, Ju noted that holders of more than 2 years, who are bear market investors, also sold about 67% of their BTC. While these holders are selling, all age groups of experienced investors who have gone through several cycles are showing all-time highs in UTXO supply, indicating increasing confidence among older investors.
Main image from iStock, chart from Tradingview.com