Main navigation

Long and Mid-Term Bitcoin Investors Are Getting Rid of Their Holdings at Record Pace

News
Tue, 12/28/2021 - 13:00
article image
Arman Shirinyan
Outputs from "old spenders" are increasing as Bitcoin drops by 2.5%
Long and Mid-Term Bitcoin Investors Are Getting Rid of Their Holdings at Record Pace
Cover image via stock.adobe.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News
Contents

The Glassnode Alerts on-chain data provider has shared the Number of Spent Outputs with Lifespan 1y-2y (7d MA) metric that might give the market a hint about the source of the main selling pressure that is currently driving Bitcoin and other cryptocurrencies down.

Number of Spent Outputs metric

The Glassnode indicator is designed to determine the number of outputs from Bitcoin wallets with different lifespans. The Lifespan setting allows users to determine whether spent outputs are "old" or "young."

While "young" spenders might not have the same effect on the market as "old" spenders. Short-term holders are usually the ones who entered the asset shortly before selling it in order to generate moderate revenue by holding the asset for a moderate time.

Related
Cryptocurrency Hackers Stole $9.8 Billion in 2021, 73% of Them Are DeFi Incidents

"Old" spenders, on the other hand, are usually the ones who move or change trends on the market since their position is more likely to be significantly bigger and have more impact on the market. In this case, the "old" spenders rate has spiked significantly by breaking the one-month record.

History of "old" coins being spent

According to the historical data from the metric, the higher spending rate of "old" entities almost always correlates with a negative price action on the cryptocurrency market. The spending spike tracked on Nov. 11 was more likely the catalyst of the 28% retrace of Bitcoin observed by the market today.

Related
Shiba Inu Whale Holding 1 Trillion Tokens Acquires $3.9 Million SAND

Lowering spending rates are usually considered signals of accumulation periods in which mid- or long-term investors prefer increasing their positions or general holdings. The metric is often used with exchange reserves and outflows. Both of these metrics are still showing low inflow rates and reserves, which indicates that the market has not fully reversed.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.