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December 9, 2022
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Older Bitcoins are used as price goes up

In agreement with the companySome long-term Bitcoin holders have taken advantage of currently high Bitcoin prices to make a profit, but the volume of these sales so far has not been enough to bring the price down.

Source: Glassnode

In his latest weekly report, Glassnode said the increase in spending was seen among portfolios that held their bitcoins for between 6 months and 5 years, even though these holders are likely to be seasoned investors “who have weathered non-trivial volatility in this cycle.”

And while the increase in spending was the biggest in the 6-month to 5-year group, “a sharp increase” can be seen across all age groups, the company said, adding that this suggests that “some currencies are losing liquidity.”

Source: Glassnode
Source: Glassnode

In addition, Glassnode noted that, as some older bitcoins are being moved, bitcoin balances on the exchanges also had “a slight increase” after a month-long period of stable balances.

The Exchange Net Flow metric shows that this week there were overall net inflows to exchanges as some traders and investors appear to be taking profits and capitalizing on market strength,” the report said.

However, it also added that the magnitude of the current exchange inflow “is no different” from the inflows seen during the bull market from December 2020 to April 2021. As such, it should be considered “reasonably expected behavior”, wrote the Glassnode analysts.

Source: Glassnode
Source: Glassnode

Looking at the bitcoin derivatives market, Glassnode also noted that open contracts for options and futures increased along with the price of the number one cryptocurrency.

After dropping $27.4 billion, the highest all-time record during the May liquidation, the number of open interest in Bitcoin futures markets rose 56%, or $6 billion, from recent consolidation lows. , said the report.

“This particular week, there was an increase in [USD] 1B in open futures contracts as traders began to take on more leverage,” the company wrote, adding that the data shows “a moderate trend to the long side” among bitcoin futures traders.

Among other findings, the report said options markets posted multi-month highs in open interest, rising more than $4.1 billion or 105% from the June lows. The current level of $8 billion in open interest is similar to the levels seen during the May settlement as well as in January-February of this year. However, prices were lower in both timeframes, trading around $30,000 to $40,000.

Finished Glassnode:

It also suggests that, relative to the total market size, the degree of open interest in derivatives markets is relatively low compared to the degree of leverage seen in the first half of the year.

At 17:00 UTC on Tuesday, bitcoin has dropped 2.93% in the last 24 hours to trade at $48,034.50 The price remains 4.86% in the last 7 days and 40.74% in the last 30 days , according to the data of the coinmarketcap.com

Source: CryptoNews

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