Traders and long-term investors in bitcoin: what does their behavior tell us?

Analysts point out that along with bitcoin reaching the $60,000 mark at the end of last week, the actions of a significant number of traders and long-term investors in this cryptocurrency #1 demonstrate a consensus about the high probability of continued growth in the price of this digital asset.

Unchained Capital’s analysis of long-term bitcoin investing waves shows that for the first time in the history of the No. 1 cryptocurrency, a significant rise in its price is not accompanied by a sell-off of the digital asset. According to Raphael Schulze-Kraft, co-founder of research firm Glassnode, this fact indicates that “long-term investors are showing conviction” that bitcoin has not yet peaked in this wave of growth.

The lack of significant bitcoin sales by traders focused on the short-term trading horizon only further increases the likelihood of a further rise in the bitcoin price. In addition, the share of bitcoins (in the total supply of such digital assets) with at least one transaction in the last two years has now reached its lowest value in four months (45.075%).

Bitcoin investors have been reluctant to sell off their digital assets even though they have gained 728% in the past 12 months. By comparison, gold gained only 3% during the same period of time, while the dollar index, which reflects the value of the U.S. currency against a basket of the world’s key monetary units, showed a negative trend (-8%) during the same time. A comparison of gold and bitcoin is becoming a popular topic of discussion lately.