Despite the collapse of several well-known enterprises, retail investors have increased their holdings of Bitcoin this year. In addition, the amount of BTC supply owned by long-term holders is at an all-time high.
In the world of cryptocurrency, things are sometimes good. Despite a 75% decline in price, Bitcoin on-chain metrics remain good.
Glassnode’s on-chain analysis reveals that retail dealers now hold 17% of the total BTC supply. Retail investors are individuals with wallets containing fewer than ten coins, according to the business. The data also shows retail holdings have sharply increased over the past month.
Will Clemente, a co-founder of Reflexivity Research, said on December 20:
Not perfect yet, but solid for a 12-year-old asset and definitely trending in the right direction.
Retailers now hold a record 17% of the total supply of Bitcoin. Although not quite flawless, this 12-year-old asset is doing well for its age and is unquestionably moving in the right direction. While Fiat’s holding base gradually narrows to a few large holders, Bitcoin’s supply gradually spreads.
Bitcoin Owners Continue To Be Resolute
In times of market declines or media FUD, retail investors are typically the first to panic sell. That has undoubtedly occurred in 2022, just as it did in 2018 after the ICO crackdown.
Furthermore, Retail investors typically arrive at the party after it has already begun and frequently come in late. By building up at the cycle’s bottom, which is now, institutional and long-term investors are a little savvier.
According to a recent report by Coinbase Institutional, long-term Bitcoin investors presently control 85% of the currency’s circulation quantity.
Glassnode confirmed the results, adding that this month’s record-high holder supply of 13.9 million BTC was reached. According to the research, long-term Bitcoin ownership is roughly 72.3% of the total supply. Long-term owners are individuals who have the asset in their possession for longer than 180 days, according to this criteria.
However, despite the market turbulence this year, these indicators imply that there is still a great deal of faith and confidence in Bitcoin.
Furthermore, Coinbase predicted that in 2023, high-quality assets would prevail over altcoins. Until the liquidity squeeze is resolved, institutional investors will predominantly favor BTC and ETH for the upcoming several months.
Outlook For The Cryptocurrency Market
Although there have been slight advances today, the cryptocurrency markets are still moving sideways. Approximately $844 billion is the total market capitalization, which is close to last month’s cycle low.
Analysts largely agree that the sideways trade and little volatility will last well into 2023.
We assign a low probability that crypto performance will decouple from traditional risk assets in the first few months of 2023.