Over the past week, long-term bitcoin holders have increased consumption to levels that indicate risk reduction from the market, but it is still the dominant investment strategy.

Uncertain macroeconomic headwinds last week likely triggered an increase in sales of long-term owners and drove some short-term owners out of their positions, according to analyst firm Glassnode. Last week, coins older than six months accounted for 5% of all expenditure, a level not seen since November last year.

Short-term holders (STH) who hold coins for less than 155 days continue to fall, but not necessarily due to sales. Glassnode suggests that although STH tends to trade more frequently, the recent decline in STH supply “can only occur when the majority of the coin supply is at rest and crosses the threshold for 155-day life, becoming a long-term holder supply.”

Bitcoin (BTC) accumulation patterns do not indicate bear market behavior as the general selling pressure remains constant. In addition, more than 75% of BTC’s working capital has been inactive for at least six months, despite the recent increase in sales. Glassnode says this shows that investors are still mostly scammers.

Long-term bitcoin holders increased sales last week. – glass knot
Glassnode noted that the sale took place in a relatively strong market that avoided large ups or downs, and has remained within reach most of this year. This is believed to prevent the capitulation event that often occurs at the end of a bearish cycle. According to CoinGecko, there has been no major capitulation since May last year, when the price of BTC fell from $ 58,771 to $ 34,977 over 15 days.

The capitulation from May to October marked the last time the Bitcoin build-up resembled bear market behavior.

Bitcoin accumulation patterns are still above bearish market trends. – glass knot
The profit / loss ratio to the STH offer is still close to the historical low set in the middle of 2021. Currently, 82% of the STH coins are at a loss. Glassnode says that this signals a later stage of the bear market, as smart investors put their coins in cold storage to wait for positive return rates to return.

Short-term owners suffer almost record losses. – glass knot
Related: BTC price fights below $ 39,000 ahead of expected Fed rate hike

As mentioned in last week’s BTC market review, currency outputs remain very high. Last week, Coinbase registered its largest outflow in almost five years, with 31,130 BTC leaving the stock exchange. These outflows illustrate Bitcoin’s growing reputation as a must-have in the modern investor’s portfolio and a persistent reluctance to liquidate it quickly.

Source: CoinTelegraph