Blockchain analytics platform Glassnode says that the faith of the long-term Bitcoin (BTC) investors remains unshaken.
Glassnode says that it is keeping a close watch on the Dormancy metric, which tracks the average age per unit of BTC moved.
According to the analytics firm, low dormancy values means the coins being spent are relatively young, suggesting that older coins are generally unspent.
Glassnode says the average age per BTC is currently at multi-year lows, indicating that the crypto downturn has done little to destroy the conviction of long-term Bitcoin investors.
“…it is quite clear that no widespread loss of HODLer conviction has taken place.
The decline in lifespan metrics actually bodes well for the longer-term, as it indicates old coins are stationary, and declining prices have little psychological impact on this cohorts’ conviction.”
However, Glassnode says the sustained weakness of Bitcoin despite the strong conviction of long-term holders is bad news for the king crypto.
“If prices were climbing, this would be a very constructive signal, as it shows older coins are staying dormant. As it stands, however, this indicates the reverse, whereby prices are still struggling to hold the line even with older coins staying put in investor wallets.”
Glassnode adds that a similar on-chain metric also shows the precarious situation of BTC.
“At a macro scale, the Coin-Years Destroyed metric continues to push lower, reaching a relatively significant low.
This metric aggregates the total lifespan destroyed (in years) over the last 365-days, and similar to dormancy, low levels are usually constructive and typical of late stage bear markets.
It remains plausible that the Bitcoin market is trading within what may become a longer-term bottom formation pattern.
However, it is clear that the market is only just hanging on at present and is far from out of the woods yet.”
Bitcoin is trading at $20,202 at time of writing.
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