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Bitcoin Liveliness Hits 7-Month High as Long-Term Holders Are Liquidating Positions

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Sat, 12/05/2020 - 11:51
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Yuri Molchan
Glassnode has reported that the Bitcoin liveliness index had reached a 7-month high and BTC miners outflow has spiked almost 100 percent in the past twenty-four hours
Bitcoin Liveliness Hits 7-Month High as Long-Term Holders Are Liquidating Positions
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Data recently shared by the Glassnode analytics supplier says that long-term holders are liquidating their Bitcoin positions and so are miners.

The volume of BTC miners outflow has surged almost 100 percent over the past twenty-four hours.

BTC miners outflow soars 96.8 percent

Glassnode has reported that over the past twenty-four hours, Bitcoin miners have increased the outflow volume of BTC (2-day MA) from their wallets by a whopping 96.8 percent, setting a new high.

BTC
Image via Twitter

Bitcoin liveliness index hits a 7-month high

Glassnode also spread the word about another index surging. Bitcoin liveliness (1-day MA) has spiked to a seven-month high, the chart says.

Glassnode explains what a rise of this index signifies: as it increases, long term holders liquidate their positions and it declines when they get more Bitcoin to hodl.

“Liveliness is defined as the ratio of the sum of Coin Days Destroyed and the sum of all coin days ever created. Liveliness increases as long term holder liquidate positions and decreases while they accumulate to HODL.”

BTC
Image via Glassnode

Related
Microstrategy Grabs $475 Million in Bitcoin in 2020 – Double BTC Amount Mined in November

Publicly traded companies keep accumulating BTC

In spite of the above mentioned data, large institutional players keep acquiring Bitcoin to store it long-term.

As U.Today reported previously, Microstrategy run by Michael Saylor has acquired another Bitcoin lump worth $50 million. That’s 2,574 Bitcoin at an average rate of $19,427 per BTC.

The total Bitcoin holdings of the company now constitutes 40,824 Bitcoins (acquired throughout 2020).

The company has spent a whopping $475 million on its massive Bitcoin bet to keep its cash reserves from declining as USD is losing value after the US money supply increased 25 percent this year.

Grayscale has also been actively accumulating Bitcoin and by now it has $12.6 billion crypto assets under its management.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.