New data from crypto analytics firm IntoTheBlock reveals that long-term holders of Bitcoin have accumulated tens of billions of dollars worth of BTC during the last year.
In a new report, IntoTheBlock highlights a “somewhat bizarre” rally that occurred in crypto even though macro factors served as headwinds for the digital asset markets.
“The US economy just recorded its second straight quarterly decline in real GDP (gross domestic product). Despite the decrease in growth and the Fed’s 75 [point] rate hike, crypto markets have strongly outperformed.”
As the crypto markets flash signs of life, IntoTheBlock says that long-term holders, or entities that have been holding their crypto stack for at least a year, have accumulated 2.7 million BTC ($64 billion) in the past 12 months.
“12.69 million Bitcoin, or approximately 60% of all Bitcoin in circulation, belong to addresses that have been holding for at least a year… Long-term accumulation in crypto has historically aligned with bear markets. Current patterns exemplify how ‘HODL’ mentality set price floors for Bitcoin.”
According to IntoTheBlock, the crypto rally may have benefited BTC, but other digital assets are doing even better.
“It is not just Bitcoin benefiting from the recent rally, with most of the market performing even better. To a certain extent, this has to do with even higher beta values for smaller cap plays. However, Ethereum has its own merit with the anticipated transition to proof of stake leading to a new all-time high in active addresses.”
The analytics firm concludes that the industry’s current bounce back doesn’t necessarily mark the end of the crypto bear market.
“Overall, while crypto remains strongly correlated to macro conditions, it is creating its own merits for growth. These have to do both with investor accumulation and broader fundamental shifts taking place in the underlying technology.
While this does not necessarily suggest the end of the bear market, it is evident that risk-on sentiment in crypto is back in spite of dire macro headlines.”
Bitcoin is changing hands at $23,325 at time of writing, a 1.75% dip on the day.
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