Ark Invest, the investment firm led by Cathie Wood, says long-term Bitcoin (BTC) holders held strong last year despite market turmoil.
According to the investment firm, there remains a “robust cohort” of long-term Bitcoin holders who were not moving their crypto holdings despite high-profile cases of fraud and a collapse in price.
Ark Invest says the percentage of supply last moved in two or more years is at an all-time high of 47% and that Coin Days Destroyed (CDD) data indicates long-term holders did not look for opportunities to sell. The CDD metric looks at the value of each Bitcoin transaction while giving weight to the number of days since the coins were last moved.
“In our view, although the spending of old coins is common in bear markets, a low value of coin days destroyed conveys that holders remained strong despite the multiple frauds and grey swans during 2022.”
Ark Invest says that after months of sideways movement, the crypto markets appear ready to make big moves.
“Although low volatility generally is a neutral signal, in our view it does suggest an upcoming expansion in the form of a breakout or a breakdown. We believe important market direction may come during the first quarter of 2023 given the potential impulse of the price move.”
The markets have rallied in recent days. Bitcoin soared Thursday to above $19,000 after the CPI (Consumer Price Index) data release, the highest price since the FTX implosion, but later declined into the $18,000 range. At time of writing, Bitcoin is changing hands at $18,830.
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