Bitcoin, the flagship cryptocurrency, has many supporters. However, its future and future price movements remain a mystery. Fortunately, some analysts and experts frequently try to elucidate this mystery to the delight of investors. The on-chain analysis company Glassnode took an interest in the performance of the queen of cryptos and its conclusions are rather reassuring for bitcoiners.
The study of Glassnode and the tools used
The series of price declines of the queen of cryptos is coming to an end according to several analysts. Confident and knowing the potential of this crypto, some are also predicting a big increase for bitcoin. The analysis company Glassnode announces a winter recovery for crypto. She dedicated one of his recent studies to the ebb and flow of bitcoin coins. She looked at bitcoin hodlers who accumulated crypto during the bear market and short-term investors who prefer to profit from crypto price movements.
To successfully complete its study, the company used a metric called “realized capital.” This allowed him to measure the total amount paid by investors to purchase existing bitcoins. Glassnode then carried out a segmentation of dormant bitcoin coins held by investors for different periods of time.
She comes to the following conclusion: “During market uptrends, older coins are spent and transferred from long-term holders to new investors… During market downtrends, speculators lose interest and gradually transfer coins to longer-term holders.
Towards a winter recovery for bitcoin?
The Glassnode report highlights the strong presence of bitcoin hodlers in the market. “The bitcoin supply remains heavily dominated by the HODLer cohort, with a large majority of coins dating back more than 6 months,” we read in the report.
Glassnode also analyzed the profitability of bitcoin hodlers and short-term holders based on their average cost. The analysis company concludes that the market is experiencing its first bullish phase. A first bullish period which is often marked by profits for hodlers and during which short-term traders remain close to the break-even point.
While the Glassnode study indicates that the market is recovering after a long period of decline, some analysts seem not to see things the same way. This is the case of Jim Cramer, who recently expressed his concerns about the future of bitcoin. The CNBC host fears a collapse of the flagship crypto.
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