When looking at the amount of Bitcoin or Ethereum that has been held for more than 6 months by the same person/entity, we immediately can conclude one clear fact - crypto investors believe the market is nowhere near the top.
When investors believe the top is approaching, we will see more short-term trading activity as well coins moving back on to exchanges, so they'll be ready to trade.
Instead, we're seeing the complete opposite - investors holding coins longer, and investors unconcerned with being able to sell their Bitcoin or Ethereum quickly.
Investors main concern: security storing their crypto....
Which is why huge quantities have been taken off exchanges and placed into offline cold storage.
The study of how long coins were being held by the same investor was conducted by Glassnode, who says their long-term holding charts indicate "a strong HODL conviction" in the current market.
The Hyper-Bullish Effect...
We're talking about the most basic fundamentals behind supply and demand - and what we're seeing is a supply being accumulated and removed from the open market, while demand continues to grow.
This is a combination of factors that sends prices (of anything) upwards fast, as new buyers entering the market are left in bidding wars over a dwindling supply.
Until recently, crypto investors have overwhelmingly had one thing in common - thinking they may have to sell it all in a moments notice. That's why this strong trend in the opposite direction is a true indicator of a new, different market, made up of investors confident in their investments.
----------- Author: Ross Davis E-Mail: [email protected] Twitter:@RossFMSan Francisco Newsroom / Breaking Crypto News