Bitcoin (BTC), the largest cryptocurrency, lost 14.3% after setting a two-year high inspired by the long-anticipated ETFs approval in the U.S. Despite some investors deciding to take profits in sub-$50,000 waters, the core bullish trend remains unchallenged, analysts and traders say.
Bitcoin (BTC) flows to strong hands: VanEck's, Tether advisor is not surprised
As Bitcoins (BTC) are changing owners, "strong hands" allocate the coins being sold by weak ones. This situation does not look unusual to cryptocurrency veteran Gabor Gurbacs, strategy advisor at Tether Limited and VanEck, he said on Jan. 19 on X.
The whole situation demonstrates "nothing new," he admitted.
As covered by U.Today previously, Gurbacs is excited by the potential effects of Bitcoin ETFs being green-lit by the U.S. regulators.
He foresees a 10x-50x increase in the accessibility of Bitcoin (BTC) as an investment instrument for various classes of asset managers within a single year.
As of printing time, Bitcoin (BTC) is changing hands at $41,539, being up by 0.9% in the last 24 hours. The BTC trading volume saw a 17% decline in the corresponding period.
How strong are these hands?
Meanwhile, on-chain analysts managed to estimate the "strength" of long-term holders' hands. As per the research of a pseudonymous Bitcoin (BTC) analyst who goes by @TXMCtrades on X, most of them hold their assets for 1.5-2 years before taking profits.
The author and host of Alpha Beta Soup channel on trading indicated that this pattern has been valid for at least the past 10 years. By contrast, taking profits after 3.5-4 years of HODLing is an "artifact of bull runs."
As covered by U.Today previously, the average long-term holder enjoys a 55% profit on their deposit given the current prices, Glassnode researchers said.
This metric looks "meaningfully positive" to analysts in January 2024.