Digital Asset Manager Grayscale says current investment patterns in Bitcoin mirroring trends were present in early 2016, when BTC started an astronomical 4,400% start in less than two years to its fullest.
Phil Bonello, director of research at Grayscale, reports that there is a growing number of investors holding on to their Bitcoin. In Grayscale’s Holder Vs. Speculator Index is the percentage of holding coins – BTCs that have not been moved in one to three years – up and up. Meanwhile, the percentage of speculative currencies – BTC that has moved in the last 90 days – is on a decline, just like in 2016.
According to Bonello, an increase in bearer coins is a potential bullish indicator, while an increase in speculator coins looks bearish.
Bonello also notes that there has never been a higher level of Bitcoin held in a year.
“This metric indicates a strong belief in Bitcoin by its current investor base. While this is a metric metric, it also shows the demand for using the Bitcoin business as a store of value – instead of trading, it appears that investors are interested in holding Bitcoin despite its volatility …
This report is intended to help investors visualize why Bitcoin may be more important than ever; we examine the value indicators of Bitcoin, determine the substantial imbalance of supply / demand, and extrapolate how these factors can make a thin wind for the acceptance and price of Bitcoin. This analysis indicates that the current Bitcoin market structure is parallel to that of early 2016 before it began its historic bull run. ”
The researcher cautions that significant off-chain activity may reduce the effectiveness of these metrics.
The price of Bitcoin in January 2016 stood at around $ 434. In less than 24 months, the crypto-crypto went on to skyrocket by 4.431%, heading for its all-time high of $ 19,665, according to CoinGecko.
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