On-chain metrics show that Bitcoin purchased months ago has matured, but investors are still unwilling to sell.
This week’s on-chain report from Glassnode focused on coin maturation to evaluate the bullishness of Bitcoin and stablecoins. The metrics show that the market is still bullish. It also added that Bitcoin has recovered from the earlier market correction, and it was regaining momentum.
The report highlighted that on-chain metrics indicate that investors were still holding onto Bitcoin and Ethereum, even as the coin maturation occurred. Network activity for the two leading cryptocurrencies was also evidently high.
While Bitcoin was recovering from the low price caused by market correction, the supply of stablecoins has reached an all-time high. Ethereum’s market dominance was also increasing as exchanges started recording low levels of ETH available for trade. This was attributed to the high demand for ETH by DeFi developers.
Investors holding on to BTC
Glassnode also states that Bitcoin that was bought more than six months ago for long-term speculation, was still being held. When these investors were purchasing Bitcoin, BTC prices were ranging from $16,000 to $18,000. The research shows that coins bought during this period were dormant, as investors were unwilling to sell even though BTC’s value has since tripled.
Long-term investors do not have the need to let go of their crypto assets. However, retail traders who want to make returns from crypto trading are usually the cause of market volatility. The metrics also show that from April 8, the number of mature coins was higher than the number of traded coins. The total BTC held by long-term investors and institutions was also increasing.
Bitcoin’s Price movement
Bitcoin has risen again in the last week to go again past the $55,000 mark. As of writing, Bitcoin was trading at around $55700, according to CoinMarketCap. This is a 5% dip from its value the previous day.
On May 3, Bitcoin was doing exceptionally well, given that it almost touched its earlier record price of $60000. The crypto was trading at $59,000 at two periods during the day. However, the coin was unable to sustain the high price. Asian market trading pushed BTC back to $55,000, and it is since recovering from the level.
Bitcoin is expected to remain bullish as the stablecoin supply ratio increases. However, it needs to go above the $60,000 mark to regain its ATH achieved in April. If Bitcoin falls again to below $50,000, it could mark the end of its bullish rally.