Long-term Bitcoin holders have accumulated $64 billion in BTC over the past 12 months: analytics firm IntoTheBlock
New data from crypto analytics firm IntoTheBlock shows that long-term owners of Bitcoin have accumulated tens of billions of dollars worth of BTC over the past year.
In a new report, IntoTheBlock highlights a “somewhat bizarre” rally that has taken place in crypto despite macro factors serving as headwinds for digital asset markets.
“The US economy just posted its second consecutive quarterly contraction in real GDP (gross domestic product). Despite the decline in growth and the 75th [point] Rate hikes have greatly outperformed crypto markets.”
As crypto markets show signs of life, IntoTheBlock says that long-term holders, or businesses that have held their crypto stack for at least a year, have accumulated 2.7 million BTC ($64 billion) over the past 12 months.
“12.69 million bitcoin, or approximately 60% of all bitcoin in circulation, belongs to addresses that have been held for at least a year… Long-term accumulation in crypto is historically aligned with bear markets. Current patterns illustrate how the ‘HODL’ mentality sets price floors for Bitcoin.”
According to IntoTheBlock, BTC may have benefited from the crypto rally, but other digital assets are doing even better.
“Not only is bitcoin benefiting from the recent rally, most of the market is doing even better. To some extent, this has to do with even higher beta values for small-cap games. However, Ethereum has its own advantage as the expected move to Proof of Stake results in a new all-time high in active addresses.”
The analytics firm concludes that the current industry recovery does not necessarily mean the end of the crypto bear market.
“While crypto continues to remain highly correlated with macro conditions, overall it creates its own merits for growth. These have to do with both investor accumulation and broader fundamental changes taking place in the underlying technology.
While this does not necessarily indicate the end of the bear market, it is evident that risk appetite in crypto has returned despite the bleak macro headlines.”
Bitcoin is changing hands at $23,325 at the time of writing, down 1.75% on the day.
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