Long-term holders of Bitcoin are using the token’s latest price crash to build their holdings.
Bitcoin has slumped nearly 36% this year and is currently trading around $29,000- its lowest level since late-2020. The token has now effectively lost all of its gains through 2021- one of its best years ever.
But long-term Bitcoin holders appear to be undeterred by the recent losses. Data shows that they have used the crash as an opportunity to accumulate.
Long-term Bitcoin holders are accumulating
Data from blockchain analytics firm IntoTheBlock shows that long-term holders are using this bear market to increase their tokens. The trend is observed during most bear markets, given that the fall in prices makes Bitcoin far more attractive.
The percentage of $BTC owned by addresses holding one year or longer (green to blue colors) has expanded in previous bear markets – So far we’re repeating this same pattern
