Storing Bitcoin or not? Long-term Bitcoin holders, the first cryptocurrency, continue to open new long positions during the asset’s 20 percent correction. In our new LATOKEN review, let’s try to understand if large Bitcoin purchases can affect its price. Read in our LATOKEN review!
The latest weekly research report by Glassnode, which was released on November 22, states that long-term Bitcoin holders continue to actively accumulate the cryptocurrency, despite an almost 20 percent correction of the asset after reaching an all-time high of $69,000. So why are investors still actively accumulating Bitcoin? Could this affect the digital asset market? Read our new LATOKEN review and find everything out!
The mood indicator
The increase in the number of Bitcoins on the addresses of long-term holders might be an indicator of the sentiment and mood in the crypto market. When investors increase their savings, it indicates high expectations for the growth of cryptocurrency.
Given that the crypto market is highly dependent on the emotions of its participants, the mood indicator is an essential indicator of where the market is going to move shortly.
Bitcoin fans, crypto enthusiasts, and other participants in the crypto market expect higher growth in Bitcoin and are in no hurry to exit positions, hoping for higher returns shortly.
We should also keep in mind that many Bitcoin holders believe in the growth of the asset to $1 million. And they are unlikely to fix profits in the foreseeable future.
Storing Bitcoin — Bullish signal
Another reason for the accumulation of Bitcoins by long-term holders could be the high inflation rate. The US Federal Reserve representative, Christopher Waller, called Bitcoin a digital version of gold, could also increase interest in the first cryptocurrency.
Usually, representatives of the FRS do not say anything without good reason, and large holders could take this statement as a kind of signal that the Fed and other world central banks will start buying BTC.
Bitcoin price can also directly depend on the accumulation of the asset by long-term holders. Usually, large transactions for the purchase of the first cryptocurrency take place on OTC markets (“Over-the-Counter,” outside the exchanges). Then, when OTC sellers run out of an asset, they follow it to crypto exchanges, buying most of the available supply and thus increasing its value.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.
