Bitcoin`s Price Continues Above $43,000 As Long-Term Holders `Remain Steadfast`

The majority of long-term bitcoin investors remain unwilling to part with their coins at current prices, according to Glassnode analysts.

Bitcoin  BTC -1.06%'s price continued to trade above $43,000 on Tuesday as it continued a rally that's pushed the digital asset up more than 10% over the past week. 

The largest digital asset by market capitalization has increased by over 0.5% in the past 24 hours and was changing hands for $43,507 at 12:00 p.m. ET, according to The Block data.

The majority of long-term bitcoin investors remain unwilling to part with their coins at current prices, according to Glassnode analysts.

Glassnode's market report released on Tuesday stated that the vast majority of bitcoin holders, "appear to be calmly riding the market waves."

In reference to the bitcoin supply last active metric, which measures the proportion of the circulating supply of BTC held for multi-year time horizons, the analysts said "the vast majority of the bitcoin holder base remains steadfast, with the percentage of held supply across multiple age bands residing just below all-time highs."

"The dominant majority of the supply remains tightly held, arguably waiting for higher spot prices, or perhaps increased volatility as a motivator to spend," the report added.

However, the analysts referred to sell pressure in the one -and two-year holder cohort. "Many of these, but not all, are associated with GBTC, this indicates that a non-trivial volume of older supply has been on the move in recent weeks," the analysts added.

ETF flows driving trading volume uptick

According to Tuesday's K33 Market Research report, bitcoin spot trading volume has reached "persistently higher activity following the ETF approvals."

The report added that the increased trading volume is likely partially attributed to spot bitcoin ETF flows. "Nonetheless, a substantial portion of ETF flows are likely netted between other OTC orders without touching spot market order books," the K33 analysts added.

According to The Block's Data Dashboard, bitcoin's monthly on-chain transaction volume for January was a multi-month high. Trading volume for January stands at $1.11 trillion, with almost two days still left in the month. Bitcoin on-chain volume has been climbing steadily since September 2023.

Source: theblock.co