Although Bitcoin rose 70% in 2021, BTC sold by experienced Bitcoin holders still hit record lows

Time:2021-12-28 Source: 923 views Trending Copy share

The data shows that the BTC that moved in the fourth quarter was the "young" BTC bought during the summer low of $30,000.
Although Bitcoin rose 70% in 2021, BTC sold by experienced Bitcoin holders still hit record lows
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The data shows that although the price of Bitcoin hit a record high of $69,000 this year, experienced Bitcoin holders hardly sold any Bitcoin.

According to the Coin Days Destroyed (CDD) indicator of the on-chain analytics company Glassnode, the proportion of Bitcoin spent by experienced Bitcoin holders is still close to the lowest level in history.
Long-term holders are working hard for the whole year of 2021

The latest sign of the confidence of investors and holders of Bitcoin over the years is that the CDD is still very calm.

This indicator refers to the time that each BTC is dormant before each movement. This provides an alternative to simple volume measurement for determining market trends. Therefore, older bitcoins are more "important" than younger bitcoins with a history of active circulation.

"Despite the increase in the past few months, the current value is still near historical lows," the Twitter account UTXO Management concluded via a chart.

Coin Days Destroyed (CDD) Annotation Chart Source: UTXO Management/Twitter

The data emphasizes that long-term holders have remained strong since the sales of senior holders surged after BTC/USD broke through the historical high of $20,000 in 2017 last year.

Even the nearly $70,000 rally did not clearly break this trend, and sales still seem to come from newer market entrants.
Buyers in summer are sellers in winter

The HODL Waves indicator of Unchained Capital confirms this-the number of bitcoins purchased 3 to 6 months ago is now the largest reduction in the total supply.

This means that sellers bought their BTC between June and September this year, during which time BTC/USD fell to a low of $30,000.

Bitcoin HODL Waves graph Source: Unchained Capital

According to Cointelegraph, the obvious differences between different holder groups have been closely observed for a long time.

Even those who entered the market when the Bitcoin price was $20,000 are doubling down their bets, because BTC/USD looks to be about $20,000 higher at the end of 2021 than it was at the beginning of January.

Bitcoin once again enters the accumulation mode.

-Dylan LeClair (@DylanLeClair_) December 23, 2021

At the same time, UTXO Management senior analyst Dylan LeClair pointed out last week that, overall, holders are increasing their positions this month.

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